Baht becomes strongest in 6 years

BANGKOK: — The baht has appreciated to touch 37.10 to the US dollar on Wednesday’s trading, the strongest in six years, since there is a capital inflow into the Stock Exchange of Thailand and the greenback has weakened against other currencies, according to money dealers.

The dealer at Bangkok Bank said the baht hovered around 37.10-37.15 to the dollar at the market close, up from 37.20-37.23 on the opening bell. He said the baht appreciation stemmed from the capital inflow into the stock market.

The local currency had strengthened in the same direction with other regional currencies.

Bank of Thailand’s Governor-designate Tarisa Watanagase conceded the baht movement in a range of 37.10-37.15 to the US dollar is considered too strong. The sharp appreciation was partly because a large amount of foreign capital had flown into Thailand.

A certain amount of the capital went to the stock market. Whether the central bank would intervene in the baht movement could not yet be confirmed, she said.

Songpol Cheevapanyaroj, an executive in charge of the capital market business group at Kasikornbank (formaly Thai Farmers Bank), said the baht had strengthened because the US dollar had weakened against currencies in Asia. As well, the appreciation of the local currency stemmed from exporters’ move to dump the dollar continuously.

He said the baht movement at the end of the year needed to be closely monitored since a major flooding had affected the agriculture, which would have an impact on exports in the 3rd and 4th quarter

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