He believes the baht may swing sideways unless a new factor comes in. Poon said the baht is still supported by the sale of gold, but may weaken if investors sell off their Asian assets on the back of worse-than-expected news about the Chinese economy.

He suggested monitoring the direction of foreign investments, as they may fluctuate based on Thailand’s Covid-19 situation.

Poon said the baht’s resistance level will hover at 33.70 to 33.80, at which point exporters would offload the dollar. Meanwhile, importers will wait to buy when it dips to 33.30.

With high volatility in the currency market, businesses should use hedging tools like options to manage risks, he said.

He also said the strengthening of the dollar will be limited as the market has already acknowledged the US Federal Reserve’s sign to hasten using a tighter monetary policy.

He added that only the demand for safe assets will help the dollar to strengthen. The greenback will remain stable if the market is not heavily closed to risks as it waits for reports from listed companies and development in the Russia-Ukraine situation.