Poon said the baht could fluctuate, weaken and test the key resistance level of 34.90 if the market remains in a risk-off state.

However, the baht might strengthen if Thailand’s first-quarter GDP is better than forecast, as investors expect the Bank of Thailand to signal monetary tightening in June.

Meanwhile, Poon said the US dollar will be supported by the demand for safe assets if the market remains in a risk-off state. The market might wait for the next US Federal Reserve statement. If the Fed does not signal a heavy interest rate increase, the market may gradually open to risks, he added.

Poon said that volatility was still high in the currency market due to the Ukraine-Russia conflict, China’s Covid-19 situation, and concern about the Fed’s monetary direction.

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