The baht opened at 32.66 to the US dollar on Wednesday, weakening from Tuesday’s closing rate of 32.60
The Thai currency is likely to move between 32.60 and 32.75 during the day, Krungthai Bank market strategist Poon Panichpibool said.
He said foreign investors decided to sell their assets in Thailand due to uncertainty caused by the Covid-19 situation in the country, and this situation would lead to a gradual weakening of the baht.
Poon believed a strengthened dollar – one factor that pressures the baht – could “vanish”.
He explained that the dollar appreciation occurred due to a high inflation rate in the US. The situation could ease if Federal Reserve Chairman Jerome Powell states that the inflation is only temporary and the Fed will not implement a relaxed, financial policy.
Another factor that can halt the appreciation of the dollar is if the Covid-19 situation in Europe becomes less severe in the next one or two weeks, Poon added.