Thailand’s baht may strengthen to Bt33 against dollar

BANGKOK, July 6 (TNA) — The Thai currency, the baht, which had appreciated about 2.3 per cent against the US dollar during the first half of 2009, may strengthen further to Bt33 to the dollar late this year, according to a report issued by Kasikorn Research Centre.

The report said the baht–which ranked second in terms of Asian currencies strengthening most among Asian currencies during the first half of 2009, after the Indonesian rupiah, is expected to appreciate further during the second half on the back of economy recovery in China and other Asian countries, including Thailand.

Because of the expected economic recovery in Asia, inflation may also take place in the region later this year, which could force central banks, especially China’s, to step up stringent monetary measures aimed at controlling inflation in their countries, it said.

It is likely that the baht would move in conjunction with other Asian currencies and could test at Bt33.75 against the dollar and could even strengthen further to Bt33 by late 2009 if supportive factors continued, the report indicated.

However, in the worst-case scenario, current positive economic indicators seen in a number of other countries may not be strong enough to push world economic recovery significantly.

This may make Asian economies, including that of Thailand, to be in a difficult position to recover and the Thai baht may soften to below Bt34 against the greenback, the report said.

The baht by late last Friday was at Bt34.06 against the dolla compared to Bt34.07 the previous day.

Banks in Thailand closed Saturday and will reopen Wednesday due to Buddhist religious holidays. (TNA)