BOT handles baht appreciation

BANGKOK, September 12 (TNA) - The Bank of Thailand (BOT) has closely monitored factors related to the movement of the Thai currency in order to handle the situation appropriately. BOT Deputy Governor for Monetary Stability Mathee Supapongse told journalists of the policy on September 11, explaining that the central bank has, thus, intervened from time to time to keep the Thai baht hovering in an appropriate range. According to the BOT deputy governor, the Thai currency has appreciated the most so far, when compared with other currencies in the region, caused mainly by the depreciation of the US dollar by 10.5 per cent since early this year, in response to unfavorable economic indicators lately in the United States and an expected decision by the US Federal Reserve (FED) to keep the US key interest rate intact in the near future. The deputy governor said that BOT has also closely monitored capital inflows and their impacts, namely profit taking on the Thai stock market, in order to bring the situation under control timely. The BOT deputy governor pointed out that the relieving domestic political situation, as well as growing domestic tourism and Thai exports with rising trade surplus have also drawn in more capital inflows due to more confidence in the Thai economy among international investors. (TNA)