BANGKOK, 22 April 2011 – The current capital influx is considered as one of the main factors causing a stronger baht; however, the situation will be monitored closely, according to the Bank of Thailand (BoT).
BoT Assistant Governor for Financial Markets Operations Group Pongpen Ruengvirayudh indicated that a large amount of capital has been flowing into Asia, resulting in appreciation of many currencies across the region, including Thai baht.
Ms Pongpen noted that many currencies in Asia have become stronger and hit new record high continuously. As a result, the BoT will monitor the capital inflow very closely. She said no action was necessary for the time being.
Thai baht on Thursday opened at 29.90-29.92 baht per US dollar, which had been appreciating in line with other currencies in Asia. The stronger baht resulted from both capital influx and increase of the policy interest rate, as announced by the Monetary Policy Committee.
