He said the risk-averse market coupled with the Covid-19 situation in China could add more downward pressure on the baht.

The baht was also pressured by dividend transactions and gold purchases as investors bought more of the precious metal as prices headed down.

Poon expected the Thai currency to fluctuate and likely test the resistance level of 34.40 to 34.50. However, it might be supported by foreign investors purchasing Thai assets this week. If they do not offload a large amount of Thai assets, the baht will not weaken much, Poon said.

He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.