Call for action to curb soaring baht

Exporters demand state intervention

- NAREERAT WIRIYAPONG PHUSADEE ARUNMAS.

Regulators are being asked to intervene in the value of the baht, which has appreciated to a four-year high and could rise further because of a weakening dollar.

The Thai currency yesterday hit 31.58 to the greenback, the strongest level in more than four years, after closing on Monday at 31.81, as other regional currencies also appreciated against the dollar, according to Kasikorn Research Center (K-Research).

“The dollar has faced selling pressure recently on expectations that the Federal Reserve will cut US interest rates by more than 25 basis points at its meeting next week,’ Kanjana Chockpisansin, head of the research, banking and financial sector at the think tank, told the Bangkok Post.

“The baht has risen sharply and stronger than regional peers since Thursday, partly supported by a more stable domestic situation. Foreign funds are increasing in the Thai bond market, with inflows of up to 10 billion baht on Monday and Tuesday alone.”

Year-to-date, the Thai currency has appreciated by 7.7% against the dollar, according to K-Research.

“The baht is likely to appreciate further, possibly hitting 31.50 to the dollar,” said Ms Kanjana.

Wikij Tirawannarat, senior vice-president at Bualuang Securities, called on regulators to step in to curb the baht’s rise.