Baht gains but expert sees possibility of currency falling to 33 to the dollar

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The baht on Wednesday (March 18) opened at Bt32.15 to the US dollar, strengthening from Tuesday’s close of Bt32.32.

The Thai currency is expected to move at between Bt32.05 to Bt32.35 to the dollar, SCB Securities senior market strategist Jitipol Puksamatanan said.

“The dollar this morning started to weaken, while Asian currencies and gold price have strengthened,” he said. “This would be a positive factor for the baht and investment”.

However, the baht remains vulnerable to market fluctuations, due to its low liquidity. In the short term, if the market contracts and the demand for dollar liquidity is high, the baht will weaken to Bt33/USD within one or two weeks.

On Tuesday night, the S&P500 closed at 6 per cent, while Euro Stoxx 50 increased 3.27 per cent, rebounding from the sharp drop on Monday.

Meanwhile , the US 10-year Treasury bonds recently rose 30 basis points, reaching 1.02 per cent, and the European bond yields increased between 3 to 80 basis points.

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