He added that the baht is likely to fluctuate and weaken as the dollar will continue strengthening until the US Federal Reserve issues a statement on Thursday.

The baht has also been pressured by the dropping price of gold and the Japanese yen sparking a buying frenzy. The Japanese currency has fallen to below 26 baht per 100 yen.

Poon said foreign investment is not flowing into the Thai market as much as before because foreign investors are waiting for the Thai stock index to drop, while also waiting for bond yield to rise before purchasing.

He speculated the baht’s new resistance level will be from 36.20 to 36.30 to the dollar.

However, he reckons, that the baht will not weaken much unless there are new factors that encourage foreign investors to dump a lot of Thai assets, such as China enforcing new lockdown measures or if the political situation in Thailand worsens.

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