Krungthai Bank market strategist Poon Panichpibool predicted that the Thai currency would move between 33.45 and 33.65 per US dollar, noting that it could be even weaker because of the pressure from the strengthening dollar and the Omicron outbreaks.
The Public Health Ministry raised the Covid-19 alert level to 4 so Thai investors will need to speculate if foreign investors are worried about the Omicron situation. The situation may prompt foreign investors to adjust their asset allocations including reducing possession of Thai assets and Thai stocks in the short term.
However, there has not been a large sell-off of short-term bonds, which signifies that foreign investors do not expect the Thai currency to devalue in a drastic manner.
The baht’s key resistant level is anticipated to range from 33.20 baht to 33.30 baht per US dollar.(NNT)