Poon said the baht would not strengthen in the short term as there are risk factors, especially the dollar’s momentum as it strengthens due to the demand for safe-haven assets.

He felt the key resistance level would be 34.00 to the dollar if there is no risk factor facing the country that would pressure the baht. The Thai currency could reach its next resistance level of 34.25 if it weakens, he maintained.

Poon said the strengthening of the dollar might slow down as the market takes more risks in step with an economic recovery, which would help the baht to strengthen again.

However, even then the Thai currency will not strengthen much until investors believe the economy is clearly improving.
The key support level for the baht would be from 33.40 to 33.60 per dollar, Poon added.