Foreign fund inflows to keep baht strong

Currency is biggest regional gainer

- NUNTAWUN POLKUAMDEE

Analysts expect foreign funds to continue to flow into the Thai equity market, supported by the sharp baht appreciation that has strengthened significantly since the start of December.

Asia Plus Securities (ASPS) noted that the baht's 3.26% month-to-date gain appears "disproportionate to some underlying fundamentals".

Over the period, the dollar index weakened by only 1.20%, while foreign investors recorded net outflows of more than 15 billion baht from the Thai bond market, even as equity inflows gradually returned.