Poon said investors were awaiting the results of a key US Federal Reserve meeting, so the baht might swing sideways in a wide range.

He believes investors already have an inkling what the Fed’s monetary policies would be and any interest rate increase will not pressure the baht to weaken much. However, the Thai currency might be pressured in the short term by an uneven Chinese economic recovery, affected by the spreading Omicron variant, which in turn would affect Thai economy recovery, especially exports and tourism.

Furthermore, he said, sales continue of Chinese risk assets so investors might decrease their possession of assets in EM Asia.

As for the Ukraine-Russia conflict, Poon said, market worries have actually eased as the situation has not worsened. Thai assets are not seeing increasing sales so the baht will not be pressured to weaken much.

Poon said the baht’s resistance level was 33.50 to 33.60, which would see exporters selling the dollar. Meanwhile the key support level was 33.20, in which importers would buy dollars.