BOT assures it will act if there is volatility in the baht’s exchange rate
The Bank of Thailand (BOT) affirmed on Wednesday that it was monitoring the strengthening baht closely to prevent volatility.
The remarks came after the baht strengthened by 3.8% against the US dollar since early this year, amid the weakening US currency after the Federal Reserve lowered the policy rate beyond market expectation.
Meanwhile, China’s announcement of economic stimulus measures had a positive sentiment on regional currencies, said Pimpan Charoenkwan, assistant governor of BOT’s financial markets operations group.
She added that foreign investment funds flowing into the Thai capital market since August and the rising gold price to US$2,670 (87,209 baht) also contributed to the strengthening baht.
“The BOT is monitoring the strengthening baht closely, and is ready to deal with volatility in the currency in a bid to mitigate impact on the economic sector,” she said.
