Weakening dollar, rising gold price behind’s baht’s appreciation: BOT chief
Fed’s signal on interest rate cut has changed sentiment on dollar
Bank of Thailand Governor Sethaput Suthiwartnarueput said on Wednesday that the baht was appreciating fast due to the depreciating US dollar and the rising price of gold.
Sethaput assured that the baht still had good stability and the appreciation rate was close to the baht’s value early this year and on par with the gains of the Malaysian ringgit and the Indonesian rupiah.
Sethaput said the main factor that had led to the baht’s quick appreciation was the clear signal from the US Federal Reserve System that it would start to cut its policy rate.
He added that the rising gold price was an additional factor behind the baht’s appreciation.
“We are closely monitoring the situation,” Sethaput said.
