The Thai currency is likely to move between 33.30 and 33.45 during the day, Krungthai Bank market strategist Poon Panichpibool said.

Poon explained that the baht had not weakened in proportion with the strengthening of the dollar, as exporters continued to sell dollars, while investors were short-selling the Thai currency as the Covid-19 situation has almost reached its worst point.

He said the baht was likely to fluctuate and weaken due to the Covid-19 crisis and the rising dollar, amid demand for safe-haven assets and the Federal Reserve’s likely decision to reduce quantitative easing (QE) this year.

Investors’ stocks might be affected if the Fed decides to decrease liquidity support or QE. Investors will temporarily decrease their investments in Asian emerging markets, as they might be worried about the effects of a reduction in QE, such as the QE Taper Tantrum incident in 2013.