Baht strengthens against dollar, buoyed by foreign inflows

Poon said that the baht is likely to swing in a wide range but with no clear sign of direction. Uncertainty over the Ukraine-Russia conflict has been causing the dollar to strengthen and the baht to weaken over the past six weeks.

Meanwhile, the worsening Covid-19 situation in China may pressure currencies in Asia, especially Asian economies heavily exposed to China.

However, the baht is being supported by foreign inflows to the Thai market. Foreign investors continue to buy Thai assets, especially both short- and long-term bonds.

Poon forecast a resistance level for the baht of 33.70, at which point exporters would offload the dollar. He predicted a key support level of 33.20, which would spur importers to buy dollars.

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