Poon advised investors to be aware of volatility over this week’s long Songkran holiday as transactions will be fewer. He expects the baht to swing sideways in the absence of new market factors. However, the Covid-19 situation after Songkran might affect foreign transactions in the short term, he added.

Poon said the baht’s resistance level would be at 33.70 to 33.80, at which point exporters would offload the dollar. Meanwhile, importers are waiting to buy on dips at 33.30.

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

He added that the dollar might strengthen after the first round of the French presidential election if the market is worried that Emmanuel Macron could lose the second round.

However, any dollar strengthening would be limited if the European Central Bank signalled a tighter monetary policy.