Tarisa said the baht's strength continued to be in line with regional currencies due to capital flows into Southeast Asian stock markets. This includes the Thai bourse, which is exempted from the central bank's 30-per-cent unremunerated capital-reserve requirement.

The flood of capital has led to new highs in the value many countries' currencies, she said.

"The baht has been strong, in line with the currencies in the region. In the future, the baht is likely to be weakened by our foreign-exchange spending, such as for buying aircraft," she said, adding that its level would also depend on the nature of capital movements.

It has been reported that two aircraft will be imported this quarter, causing a decline in the current-account surplus. Another will be imported in the third quarter.

In addition, mega-infrastructure projects and investments in the energy and petrochemical industries in the second half of the year will put more pressure on the baht.

Tarisa said the capital flowing into the Thai bourse was not speculative money, as was the case last year, because the baht was now no stronger than other regional currencies. "The baht has of late been in line with other regional units . If the speculators want to take profits from currency appreciation, they don't need to come to Thailand," she said.

Anoma Srisukkasem

The Nation