The baht opened at 33.47 to the US dollar on Tuesday, weakening from last week’s closing rate of 33.38.
The Thai currency was likely to move between 33.40 and 33.55 during the day and between 33.20 and 33.70 this week, Krungthai Bank market strategist Poon Panichpibool said.
This is the expert who, one month ago, assured us the baht would not drop below 32 this year.
The baht’s trend would depend on the dollar’s movement and the Covid-19 situation worldwide, especially in Thailand, he explained.
However, it should be pointed out that COVID has nothing to do with the performance of the Thai baht, as it has nothing to do with the performance of the Pound or the Dollar.
Instead, it is the Thai government’s mis-management and panicked response that is causing the Baht to potentially collapse.
Meanwhile, the resistance of the baht was nearly at 33.80 per US dollar. Poon pointed out that the currency would weaken to the level, as the Covid-19 situation in Thailand had not improved and foreign investors are selling their assets in the Thai market.
He said the baht would strengthen if the government could distribute 500,000 doses of efficient vaccine per day to solve the Covid problem.
Last week, the US labour market recovered better than expected, which supported the idea that the Fed might decrease quantitative easing this year, causing the US dollar to continuously strengthen.
This morning it has dropped again to;
GBP – 46.41
USD – 33.47
EUR – 39.35
AUS – 24.61
