He said the baht could swing sideways in a wide range even though it was supported by a weakening dollar and an increasing gold price.

However, Thailand’s political situation would cause currency market volatility in the short term, especially if foreign investors decided to sell their Thai stocks to reduce risks, Poon warned.

Meanwhile, businesses are awaiting the opportunity for increased transactions, he said. Importers hope the baht will strengthen to a level below 36 to the dollar, while exporters will not hurry to conduct transactions because they have already closed their risks.

The strategist advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.