Poon said the baht will continue to swing sideways.

The Thai currency is being pressured by the strengthening dollar after the US Federal Reserve moved to implement tighter monetary policies, as well as demand for “safe-haven” assets in the short term.

Poon advised keeping a close watch on foreign transactions in Thai stocks, forecasting short-term foreign outflows. However, he expected foreign investors to continue purchasing bonds, which would support the baht and ensure it did not weaken much.

Exporters are selling the dollar in a range between 33.50 and 33.60. Poon said the baht would likely not weaken past that point unless the market goes heavily risk-off.

Amid high volatility in the currency market, businesses should use hedging tools such as options to manage risks, he added.