Central bank monitors baht’s strength amid recent appreciation against US dollar
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The baht has appreciated against the US dollar since the middle of last week due to the relative weakness of the greenback, while its strength also reflects continued signs of recovery in the Thai economy, Bank of Thailand deputy governor for monetary stability Mathee Supapongse said on Monday.
He said the central bank had been closely monitoring the baht’s strength since the Monetary Policy Committee’s meeting on May 24, given the dollar’s weakness compared to other currencies after the US Federal Reserve Board announced that it would continue to adjust US interest rates upwards on a gradual basis.
Meanwhile, Thailand’s economy is showing recovery signs, which is also contributing to the baht’s strong growth, Mathee said, adding that the Bank of Thailand was continuing to monitor capital inflow and outflow and would also continue to reduce the issuance of one-year bonds this month and next.
