ITC - your travel solution

Slumping Baht Set To Breach Key Level Of 34/dollar

25 Apr, 2022

The baht opened at 33.96 to the US dollar on Monday, weakening slightly from Friday’s close of 33.94 and edging closer to the 34 level.

The Thai currency is expected to move between 33.85 and 34.05 during the day and between 33.60 and 34.15 during the week, Krungthai market strategist Poon Panichpibool said.

Poon predicted the baht could drop below the key level of 34 to the dollar due to the strengthening dollar and dividend payments. Breaching that closely watched level would invite further losses for the Thai currency.

Poon advised close monitoring of foreign investors, cautioning that the baht would face downward pressure if they sold a large quantity of stocks and bonds.

He said the baht’s key resistance level is 34, at which point exporters would sell the dollar.

He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.

He added that the dollar could rise further supported by a risk-averse market and listed companies’ reports. It could also be supported by a weakening Yen if the Bank of Japan eases monetary policy following the US Federal Reserve’s move to raise its interest rate.



The Nation

Go Back