BANGKOK :Thailand’s baht could further appreciate as a result of more capital inflows into bonds and stocks, an incoming deputy finance minister said on Thursday.
The baht could also see sharp swings if the U.S. Federal Reserve continues to cut rates, Vorapak Tanyawong said on his Facebook post, adding that the potential inflows should be closely monitored.
The baht reached a four-year high a day prior, threatening exports and tourism, both key drivers of Southeast Asia’s second-largest economy. The currency was up 8 per cent against the U.S. dollar this year, the second-largest gain amongst Asian currencies, behind only the Taiwan dollar.
Incoming Finance Minister Ekniti Nitithanprapas told reporters that he has discussed the issue of stabilising the currency with the incoming central bank chief.
