November 14th, 2006, 17:58
(TNA) - Thailand's baht currency appreciated to 36.39 to the US dollar this morning, its strongest in eight years, bolstered by a dumping of the greenback and a capital inflow into the Thai bond market, according to a Bangkok finance analyst.
Pattaravadee Chinkulkitniwat, of Kasikornbank Plc, said the baht had continued to strengthen along with the Japanese yen, which appreciated to 118 from 117.55 to the US dollar.
The strengthening of the Thai currency also stemmed from capital inflows into the bond market in large amounts.
The next scheduled support levels of the baht are 36.30, 36.20, and 36 to the US dollar.
"Today, the baht has appreciated along with other regional currencies including the Philippine peso, Singapore dollar, Taiwan dollar and South Korean won, which is the strongest in nine years," Ms. Pattaravadee said.
However, she said, the Bank of Thailand would not remain passive in response to the current baht movement because the currency had appreciated too rapidly.
The central bank had closely monitored the bahtтАЩs movement in the past. So, she believed it would come up with a measure to curb the stronger baht.
Under the circumstances, Ms. Pattaravadee said she wanted exporters to count on financial tools such as forward or spot contracts to hedge against the currency exchange rate volatility.
Pattaravadee Chinkulkitniwat, of Kasikornbank Plc, said the baht had continued to strengthen along with the Japanese yen, which appreciated to 118 from 117.55 to the US dollar.
The strengthening of the Thai currency also stemmed from capital inflows into the bond market in large amounts.
The next scheduled support levels of the baht are 36.30, 36.20, and 36 to the US dollar.
"Today, the baht has appreciated along with other regional currencies including the Philippine peso, Singapore dollar, Taiwan dollar and South Korean won, which is the strongest in nine years," Ms. Pattaravadee said.
However, she said, the Bank of Thailand would not remain passive in response to the current baht movement because the currency had appreciated too rapidly.
The central bank had closely monitored the bahtтАЩs movement in the past. So, she believed it would come up with a measure to curb the stronger baht.
Under the circumstances, Ms. Pattaravadee said she wanted exporters to count on financial tools such as forward or spot contracts to hedge against the currency exchange rate volatility.