Poon said the baht would swing sideways as it was pressured by dividend transactions and gold sales after investors were waiting for the price of the precious metal to rebound back to its resistance level of 1,980-2,000 dollars per ounce.

He expected exporters to sell the dollar at 33.80-34 as long as the market did not turn heavily risk-averse, which would add pressure to the baht.

Poon suggested monitoring foreign investor transactions. He said there was a chance the baht could test the key resistance level of 34 if foreign investors sold a large amount of stocks and bonds.

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