Baht Strengthening Against US Dollar Again

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It's always just in time for high season! The baht is growing ever stronger against the US dollar. At the moment of this posting, the following are the exchange rates:

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US Dollar: 33.65

 

Euro: 49.205

 

British Pound: 69.765

 

Australian Dollar: 30.26

 

Canadian Dollar: 34.905

 

It's like the 98 pound weakling going to the gym. He keeps getting stronger and stronger. This is the first time I can remember seeing that a Canadian dollar yields more baht than an American dollar.

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Baht Strengthens in Accord with Regional Currencies: BoT

 

BANGKOK, Nov 13 (TNA)

 

Thailand's baht has strengthened in tandem with other regional currencies, caused by a dumping of Japanese yen by exporters, according to the Bank of Thailand.

 

Pongpen Ruengvirayudh, senior director of the BoT Financial Markets and Reserve Management Division, said the current baht appreciation stemmed from the heavy selling of the yen by exporters.

 

At the same time, importers had purchased the baht, but in small amounts.

 

However, the baht had still appreciated in parallel with other regional currencies.

 

A money dealer said the baht had risen continuously to touch 33.82 to the US dollar, the strongest in three months or since early August.

 

The baht had appreciated by almost 6.7 per cent against the US dollar since early this year although the central bank had imposed a 30 per cent reserve requirement and periodically intervened in its movement to prevent too much currency appreciation, that could affect exports.

 

BoT Governor Tarisa Watanagase said the baht still moved in the same direction as other currencies in the region.

 

It had strengthened by 6 per cent as had the Singapore dollar and Malaysian ringgit since early this year.

 

She conceded currencies of other many countries had weakened against the baht while inflation rates are relatively high. So, Thailand is in a better position in terms of trade competitiveness.

 

Regarding a call for an end to the 30 per cent withholding requirement, Mrs. Tarisa said the central bank had supported it because it viewed the measure should be taken only temporarily.

 

But the cancellation of the measure needed to take into account internal and external factors carefully.

 

She viewed it as being inappropriate to abandon the measure now, but indicated that whether or not it should be cancelled next year depended on the situation at that time, as well as investor confidence.

 

(TNA)-E005