The baht opened at 33.15 to the US dollar on Thursday, weakening from Wednesday’s closing rate of 32.96.
The Thai currency is likely to move between 33.05 and 33.25 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
Poon said the baht is likely to fluctuate and weaken as the dollar strengthens after the US Federal Reserve signalled it would raise the interest rate in March to tackle inflation.
However, Poon said, the baht would not weaken much as some investors, especially exporters, would sell the currency when it reaches between 33.20 and 33.30 to the dollar.
Poon said there was speculation whether foreign investors would sell Thai stocks or purchase shares amid a rise in the crude oil price, which might increase the value of energy stocks.
Meanwhile, investors might sell their gold holdings. The baht could strengthen if gold reached $1,820-1,830 per ounce. – The Nation
