Poon speculated that a weakening dollar may slow down the baht’s downturn, but the Thai currency may drop to 37 to the dollar if the market shifts to a risk-off state, especially if China enforces new lockdown measures. A new lockdown in China may spook investors into selling their assets in the Emerging Asia market.

Poon, however, does not expect the baht to reach that level this week unless the US Federal Reserve increases the interest rate as expected.

He pointed out that the currency market is volatile and investors are not taking many risks as they were waiting for listed companies’ performance reports and the Fed’s meeting on Thursday.

The strategist has also advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.