The baht opened at 36.40 to the US dollar on Friday, unchanged from Thursday’s closing rate.
The currency is expected to move between 36.30 and 36.45 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He added that the baht was supported by signs of the European Central Bank increasing the interest rate, which has kept the euro stronger than the dollar.
However, signs from the US Federal Reserve to increase the interest rate may stop the baht from strengthening in the short term.
The baht may also swing sideways in a wide range as investors wait for new factors including the US inflation report next week.
He suggested monitoring the fund flows after foreign investors sell off Thai stocks, as the net sales over the past four days have been worth 6.5 billion baht. If they do not buy Thai stocks again, it will be difficult for the baht to strengthen.
However, he said, the off-loading of Thai stocks may slow down after the baht shows signs of strengthening, so it could swing in the range of between 36.20 and 36.70 to the dollar in the short term.
The market strategist has advised investors to use hedging tools such as options to manage risks in a highly volatile currency market.