He said the baht was likely to fluctuate and swing in a wide range amid two important factors that could affect the currency market today, Wednesday – the Bank of Thailand’s Monetary Policy Committee (MPC) meeting and US inflation results.

Poon believes the baht might strengthen if some MPC members decide to increase the policy interest rate by 0.5 per cent. The market may feel that the committee might increase the interest rate more in their next meeting, which could lead to foreign investors purchasing Thai stocks and short-term bonds.

However, the baht could fluctuate and weaken, especially if the dollar strengthens. If the US inflation rate is higher than expected, investors might feel the US Federal Reserve would continue to increase the interest rate until it can control the situation, Poon said.

The currency market is in a cautious state as investors await core US inflation data, which would influence market opinion about the Fed’s currency policy direction, he added.