Better conditions push Thai baht higher
IMPROVED economic and political conditions have led to heavy foreign funds flow to the Thai stock market which has pushed the Thai baht higher and any measures to control the baht’s hike will be immediately implemented without prior announcement, Bank of Thailand Governor Veerathai Santiprabhob was quoted by Thai News Agency as saying today (August 30).
Mr Veerathai said the Thai stock market is attracting heavy foreign investment because the country’s fundamental factors have improved with gross national product (GDP) expanding well in the second quarter and political situation having eased.
According to a Reuters report published by Kitco.com the Thai currency hovered around 28-month highs against the US dollar today trading at 33.19 against the dollar.
It has appreciated 7.9 percent against the greenback this year, becoming Asia’s best performing currency.
Southeast Asia’s second-largest economy expanded a more than expected 3.7 percent in April-June from a year earlier, the fastest pace in over four years.
Thailand’s main stock index hit over four-year highs today as foreign funds bought into Thai assets.
Meanwhile Mr Veerathai said he has sent a circular to financial institutions asking for their cooperation in following baht transactions by non-residents because foreign currency transactions have increased in some cases.
He added that he is still waiting for information from financial institutions about this matter.
CAPTIONS:
Top: A pile of Thai baht notes. Photo: Peter Hellberg (CC-BY-SA-2.0)
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