Poon said the baht is likely to fluctuate during the day. It strengthened as the dollar declined because it was “sold on fact”, he said, after the US Federal Reserve did not signal that it would go in for a heavy interest rate increase or adjust its economic projection downwards.

Mass gold sales also provided support to the baht, Poon said.

Still, he believed the baht won’t strengthen beyond 34.70 to 34.80 as this is the level importers are waiting for to purchase the greenback.

If the market shows increased concern about US inflation, the Fed might be influenced to raise rates again, Poon said.

However, he feels the Fed will not increase the rate heavily until its meeting in July.

Poon advised investors to use hedging tools such as options to manage risks in the highly volatile currency market.