A concern had been shown by the Thailand`s central bank, further appreciation of baht will hurt exporters and damage the nation`s economy recovery.
In 13 months last week, the country had advanced to the strongest level as overseas investors boosted their holdings of the country`s stocks and bonds this year.
Prompting Prime Minister Prayuth Chan ocha to increase spending to counter the slump, exports have been contacted in the 16 of the past 18 months. The peaceful approval of a new constitution in an Aug. 7 referendum had bolstered investor confidence as the currency has also rallied.
As said by the Bank of Thailand Assistant Governor of Financial Markets Chantavarn Sucharitakul, in an e-mail interview, “To date, the appreciation of the baht might have dampened the cash flows of Thai exporters. Further strength in the baht might also derail the recovery of the Thai economy; a concern which the bank of Thailand has to monitor closely.”
As of 10:35 am in Bangkok, the baht was at 34.72 per dollar, having increased 3.8 per cent this year. It had appreciated to 34.50 on Aug. 19, the strongest since July 2015.