Poon said the baht may test its new resistance level at 35.75 to the dollar because the market is in a risk-off state, resulting in foreign funds flowing out of the country continuously.

The baht will fluctuate further before inflation numbers are revealed, though the currency’s weakening may be limited by exporters waiting to sell the baht and investors planning to sell gold.

However, Poon reckons the baht should not go beyond 36 to the dollar unless the market worries about China enforcing new lockdown measures and investors sell off stocks and bonds in the Emerging Asia market.

Meanwhile, the dollar is likely to fluctuate as the US economy has significantly slowed down and its state is worse than expected.

Also, the US Federal Reserve has not signalled it will increase the interest rate, which may pressure the dollar to weaken, though it may be supported by the demand for safe assets.

The strategist advises investors to use hedging tools like options to manage their risks in the highly volatile currency market.