Poon said the baht was likely to swing in a wide range after strengthening suddenly on Wednesday due to a weakening dollar and the Monetary Policy Committee being of the opinion that the Thai economy is recovering, while its GDP growth projection did not decrease to a large extent.

However, the baht might be pressured to weaken due to uncertainty over Ukraine-Russia peace negotiations, but Poon believes the Thai currency will not weaken much because foreigners are returning to invest in Thai stocks. They have already purchased 7 billion baht of short-term bonds in the past two days, which reflects a decrease in the baht’s weakening.

Poon expects the support level to be 33.00-33.20 to the dollar, a level importers are waiting for to purchase the US currency.

The currency market meanwhile is closely watching whether upcoming Ukraine-Russia peace negotiations will be a success after reports that a battle was raging near Kyiv. Investors are also worried that the Thai economy will shrink after signs of an inverted yield curve in the US bond market.