Poon said that the baht was supported by gold trading and foreign inflows to the Thai stock market, even though the currency market is in a risk-off state.

Moreover, the baht has risen past the key support level, causing some exporters to sell dollars which is allowing the baht to strengthen.

He said these factors – especially gold trading due to risks from the Ukraine crisis – would continue to support the Thai currency.

He added that if the crisis eases, the baht could weaken, triggering sales of energy stocks and foreign outflows from Thai stocks.

A further sudden rise in the baht could trigger controls by the Bank of Thailand, he added.

He concluded that the currency market is highly volatile and in a risk-off state after the US emphasised that Russia could attack Ukraine at any time. Investors are choosing to cut risks and seek “safe havens” such as the dollar, Japanese Yen, gold, and government bonds.