Poon said that the baht is likely to fluctuate because the gold price is increasing and foreign investors might invest in the baht.

Investors will invest in the baht if the Thai economy recovers continuously such as the GDP is better than expected or the Bank of Thailand Regional Activity Tracker signals a better recovery. Foreign investors will invest in Thai stocks and short term bonds.

The baht’s key support level would be from 32.50 to 32.60, the level some importers are waiting for so they can buy dollars, he added.

The key resistance level for the baht would be at 33 to the dollar, which is the level at which exporters might sell the US currency. Foreign investors are also waiting at this level to buy the baht.

Poon added that the baht might not strengthen much because the dollar might swing sideways if the market is in a risk-on state during the conflict between the US and China. Meanwhile, the new wave of Covid-19 spread in Europe might cause the dollar to be stable in the short term.