Poon said the risk-averse market and Covid-19 situation in China could add more downward pressure on the baht. He projected a key resistance level at 34.15 to 34.20 per dollar. If the baht weakens past 34.20, importers might scramble to buy dollars which would trigger significant further weakening of the Thai currency, he added. Poon advised close monitoring of foreign investors amid a lull in foreign outflows after sell-offs of Thai assets were triggered by heavy increases in the US and Thai 10-year bond yields. He advised businesses to use hedging tools such as options to manage risks in the highly volatile currency market.

Source: The Nation Bangkok April 26, 2022 03:55 UTC