BANGKOK, 16 January 2013 A financial expert has commented that the strengthening of the baht was caused by foreign investors’ shifting their investments from Indonesia to Thailand, after they found that Thailand has a good economic growth and low inflation rates.
According to a Thai financial expert from the CIMB Bank, the baht hit a 16-month high, quoted at 29.84-29.88 baht per US dollar, on Wednesday. The phenomenon was attributed to capital inflows and the selling of the greenback by exporters.
The main factors for the appreciation of the baht, in contrast to the depreciation of other currencies in Asia, are the influx of foreign investments in the bond and stock markets as well as foreign investments, which have been shifted from Indonesia to Thailand.
In addition, another factor contributing to the baht appreciation is the announcement made by US Federal Reserve Chairman Ben Bernanke, indicating that the US central bank will maintain the quantitative easing policy until the second half of the year, said the expert.
