He said the baht strengthened more than expected as foreign investors bought Thai stocks and short-term bonds worth more than 33 billion baht. But the Thai currency might fluctuate on Thursday as investors await US inflation results.

The dollar, too, is advancing and will continue to strengthen just before the US results, Poon said.

The baht found support after the gold price surged and reached its key resistance level of $1,830 (THB59,916) per ounce. This will help the baht not to weaken much in case the dollar strengthens if US inflation data is better than expected, he said.

Poon believes importers are waiting to buy the dollar at 32.70 while exporters would sell the currency if it reaches 33.00.

Investors continued to be in a risk-on state as they were supported by better-than-expected reports by listed companies even as worries were eased over an interest rate increase by the US Federal Reserve.

Moreover, the market is finding support from talks between French President Emmanuel Macron and his Russian counterpart Vladimir Putin, which might decrease the chance of a Russia-Ukraine conflict, Poon added.