He said the baht is highly volatile amid concerns over Europe’s energy crisis, which is pressuring the euro and supporting the dollar.

Moreover, he does not expect investors to adjust their possession of assets until the European Central Bank’s meeting on Thursday, so the baht will swing sideways until there is a new factor.

Poon said the baht may possibly weaken during the day if the market is still in a risk-off state and investors sell off more Thai stocks.

However, he expects the stock sales to slow down as some investors are waiting for the stock index to drop and the baht to weaken before they buy more stocks.

However, the baht may strengthen from a bearish divergence technical sign, especially since it strengthened more than expected on Monday.

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