Poon said the baht will possibly weaken as the dollar strengthens and the gold price heads downward.

He suggested monitoring foreign investors’ transactions. He also expects the Thai stock index to drop next week in response to the US stock index, though this will encourage foreign investors to buy Thai stocks.

Meanwhile, the dollar won support as the market expects the US Federal Reserve to increase the interest rate by 0.75 per cent in September. The greenback may strengthen further if the US labour data is better than expected.

However, the European Central Bank’s indication that it may increase the interest rate may support the euro and slow down the dollar’s strengthening.

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