He said the baht was likely to be highly volatile, especially during forthcoming results of a key European Central Bank (ECB) meeting, which comes at the same time as the US Federal Reserve chairman’s press conference.

However, Poon said the market had already acknowledged the likelihood that the Fed would increase the interest rate again, so the market will be mainly affected only by results of the ECB meeting.

If the ECB chooses not to increase the interest rate as expected and voices concern for the economy, it might pressure the euro to weaken and provide support for the dollar to strengthen.

If the baht weakens as a result, Poon expects it would test its resistance level of 36.80 to the dollar, while the support level would be around 36.30-36.40, the level importers are waiting for to purchase the dollar.

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