The Baht stays strong as Export confidence soars

http://img.photobucket.com/albums/v27/wowpow/37.png US$ 37.85

http://img.photobucket.com/albums/v27/wowpow/E46.png Euro 46.5

http://img.photobucket.com/albums/v27/wowpow/67.png UK┬г 67.3

http://finance.yahoo.com/currency/conve ... it=Convert


'Optimism as exports reach five-year high - But baht appreciation may dampen growth

Thai exports reached a five-year high in March at 440 billion baht, or US$11.09 billion, up 15.9% from the year before, caretaker commerce minister Somkid Jatusripitak said yesterday. Exports were led by steady growth in shipments from the electronics, electrical appliances and auto sectors. March imports rose to a nine-month high of 428 billion baht, or $10.775 billion, up 1.3% from the year before, he said. The result was a slight trade surplus of 12 billion baht, or $324 million, for March, which would be the first surplus in six months. Thailand posted a trade deficit of $24 million in February.

Dr Somkid said first-quarter exports grew 17.3% from the same period last year, while imports rose 6.7%. The trade deficit for the first quarter narrowed to $404 million, compared with a deficit of $3.2 billion last year. Dr Somkid yesterday met with commercial counsellors to more than 50 countries to urge them to actively support Thai exporters in foreign markets.

He expressed confidence that exports could reach their 17% growth target for the year, and said commercial officials should help private traders in organising trade exhibitions and fairs to help attract investment and trade. He also asked trade officials to monitor currency trends and fuel prices in order to help authorities gauge their impact on trade flows.

Strong trade expansion is taking place despite the steady appreciation of the baht, which is now near a seven-year high and has gained 8.9% against the US dollar since January. The baht closed yesterday at 37.74/78 against the dollar, up slightly from 37.75/80 in the morning. Traders said the baht could test the 37 barrier shortly, due primarily to US dollar weakness. Bantoon Vongsilachoti, a vice-chairman of the Board of Trade, said the rise of the baht could affect export growth, and urged regulators to intervene to help curb speculative pressure.

Currency appreciation was being driven by foreign speculation rather than economic fundamentals, he said.

''From close monitoring over the past month, we see that the baht has gained over 8% against the dollar versus just 2% by other regional currencies such as the yen,'' Mr Bantoon said.

''The central bank should intervene to protect the currency before it affects exports and economic growth.''

Bandid Nijathaworn, a deputy governor of the Bank of Thailand, said authorities were monitoring rates closely.

Regulators wanted the currency to move in line with others in the region, he said.

''The baht has appreciated relatively quickly due to US dollar weakness, as well as heavy capital inflows into the region and Thailand,'' Mr Bandid said.

He declined to say if the central bank would intervene further in the market. ' Bangkok Post

[/img]