Strong baht worries central bank

[reader]

The Bank of Thailand remains worried about a strong baht and short-term capital inflows, the governor said on Monday, as the currency traded near its highest against the dollar in more than 22 months.

 

The central bank is ready to act on any excessive moves in the baht, Veerathai Santiprabhob told a seminar.

 

"If there are large fund inflows, and causing high volatility in the baht, it's the central bank's duty to act on it with instruments available," Mr Veerathai said.

 

The baht had gained more than other currencies over the past week, the governor said, because analysts interpreted a monetary policy committee statement on May 24 to mean the central bank was unconcerned about the baht's strength.

 

That was wrong, he said .

 

"We are still worried about the baht's strength and short-term fund inflows parking in Thailand," Mr Veerathai said.

 

But except for the past week, the baht has been moving in line with regional currencies since the start of the year, he said. The baht traded at 34.12 per dollar on Monday, after reaching 34.04 on Friday, its highest in more than 22 months.

 

http://www.bangkokpost.com/business/finance/1258682/interview-bank-of-thailand-worried-about-strong-baht

[ggobkk]

Te US $ is up against the THB in today's trading.  But the THB is strong against other currencies.

[Alexx]

Overthinking currency fluctuations only gives you a headache.