Baht traded above 29 per dollar
Thai baht appreciation has continued, thanks to continued capital inflows.
At 8.14am, Thai baht gained 0.58 per cent to 29.14 per dollar. At 11am, it rose to 28.95 - the highest level since 1997. At the level, it has appreciated by 5.39 per cent from the end of last year.
Today's baht gains were "too fast" and the Bank of Thailand is ready to intervene if the currency movement is not in line with fundamentals, Governor Prasarn Trairatvorakul said today in Bangkok.
Yet, he ruled out capital controls, saying that the measures are not being considered.
The authorities attributed the appreciation to huge capital inflows, chiefly BTS Group Holdings' success in mobilising US$2.1 billion for its infrastructure fund.
A treasurer mentioned that aside from the fund, additional foreign capital also flows into the Thai bond market.
Global funds bought US$292 million more Thai government debt than they sold last week, adding to net purchases of $9.6 billion in the first quarter, official data show. That compares with $31 billion for the whole of 2012.
