The baht opened at 33.05 to the US dollar on Tuesday, weakening from Monday’s close of 33.00 to its lowest point in a month.
Krungthai Bank market strategist Poon Panichpibool forecast the Thai currency would move between 32.85 and 33.10 during the day.
Poon said the baht’s sudden weakening on Monday will slow after passing the resistance level at 33 to the dollar.
However, the baht might weaken further if the market maintains a risk-off state and foreign investors sell more Thai assets.
Meanwhile, the baht might be supported by gold-selling if the Ukraine-Russia conflict eases, so investors should monitor peace negotiations, Poon said.
He expected exporters to sell dollars when the baht reaches the key resistance level at 33.20.
He expected a key support level of 32.50, at which point importers would buy the dollar.
The Russia-Ukraine war was encouraging a risk-off state, which means markets will remain volatile. Poon said business operators should use hedging tools such as options to manage risk. – The Nation
