The Thai baht opened at 32.44 to the US dollar on Tuesday, strengthening from Monday's close of 32.53, the highest in five months.
The Thai currency is likely to move between 32.35 and 32.55 during the day, Krungthai Bank market strategist Poon Panichpibool predicted.
He said the baht may stop strengthening and swing sideways because it has risen beyond the estimated support level far too much due to Thai stocks and bonds transactions from foreign investors and the selling of gold.
He said the US Federal Reserve is likely to hike the interest rate more than expected and the conflict between Ukraine and Russia will pressure the market into a risk-off state and push the dollar to strengthen.
Poon said these factors will stop the baht from strengthening in the short term.
He suggested speculating on foreign investors' transactions of Thai assets and the direction of gold price. He said if investors continue selling those assets, it will cause the baht to strengthen.