He said the baht will test its resistance level at 35.50 to 35.65 to the dollar, especially if foreign transactions flow out of the country while the market is in a risk-off state.

However, the weakening might be slowed down by exporters waiting to sell their dollars.

Poon also believes the baht will strengthen if the price of gold rebounds and investors start trading in the precious metal.

The baht may also not weaken to the new resistance level of 36 to the dollar unless China enforces a new lockdown, forcing investors to dump bonds and stocks in emerging Asian markets.

The dollar, however, may weaken if the US economic data is worse than expected and the US Federal Reserve does not support boosting the interest at a high rate again.

Poon added that the dollar will remain stable if the economic data from Europe and Asia is worse than expected.

The strategist has advised investors to use hedging tools like options to manage their risks in the highly volatile currency market.