Baht at 6-year high against dollar
The baht broke the 38 level against the US dollar yesterday, its strongest showing in six and a half years, due largely to speculation that the central bank may raise its policy rate and to confidence having returned with the improved political situation, say dealers.
A BankThai source said yesterday the baht touched Bt37.98 to the dollar in early-morning trade but lost ground in the afternoon after positive employment figures were released.A Bangkok Bank dealer believed the baht should hover between Bt37.95 and Bt38.25 for a while. It opened at Bt38.05/Bt38.07 and closed at Bt38.15/Bt38.17. Meanwhile, investors earned profits on local stocks yesterday, after prices surged from last week's positive political outcome. Yesterday, the SET Index fell 1.66 per cent to 757.51, with foreigners being net sellers, cashing in on shares worth almost Bt541 million. Bandid Nijathaworn, deputy governor of the Bank of Thailand, said yesterday that the central bank had allowed the baht to move in line with market forces. But the bank would prevent the currency from fluctuating wildly, in order to avoid hurting the business sector, whose fortunes depend on a stable exchange rate. But he said exporters faced a tougher challenge in handling a stronger baht amid a surge in export growth over the past two months. The baht appreciation was in line with regional currencies. Bandid said an improved economic outlook had prompted an increase in capital inflows. Somruedi Banchongduang, Piyarat Setthasiriphaiboon The Nation
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