Chookiat Ophaswongse, president of the Thai Rice Exporters Association, said although the Bank of Thailand's measure sent stocks into a free fall, its effect on the market should only be short-term while warding off the currency predators.

"I strongly agree with the government's measure to alleviate the baht's appreciation, since the export sector is the key driver of the economy. If the government didn't impose the measure, farmers and exporters would mostly suffer by this significant strengthening," said Chookiat, who is also the president of the Federation of Thai Capital Market Organisations.

The government might want to find some new measure to help stabilise the baht in the long run so it would not rise faster than other currencies, he added.

Santi Vilassakdanont, president of the Federation of Thai Industries, said exporters were satisfied with this short-term measure. It would hurt the capital market but should slow short-term inflows, as it will increase costs for the "bulls" on the baht.

"This proves that these speculators were behind the baht's rise," he said. The measure should not affect the whole stock trading chain since only a small group of speculators would face problems from the measure, he said.

However, businessmen must monitor the baht's movement for the next couple of weeks. The government should apply the medicine until the Thai currency marches in step with other currencies in the region, he added.

Suchart Chantaranakaracha, an adviser to the Thai Garment Manufacturers Association, said the central bank was on the right track, although the move was delayed. The central bank should issue follow-up measures to help solve the baht problem.

Exports are the key engine of economic growth, so the government must inflict stringent controls to ease the problem.

The central bank's action showed speculators had also invaded the stock market, partly due to the over-valued baht, he said.

Anurat Khokasai, chief marketing and operations officer of Prantalay Marketing, a leading frozen seafood exporter, said exporters were delighted with the short-term measure of the government to steady the baht.

"If the government allows free speculation, exporters will face a problem and will soon be unable to compete with other countries. Exporters are praying the baht will be firmer," he said. His company's income had dropped by 15 per cent since the baht shot up this year.

Prantalay forecasts its exports next year will stay flat at this year's level of Bt7.5 billion, due to lower sales and tough competition, mainly because of the baht's climb.

Phornthep Phornprapha, president of Siam Motors Co Ltd, said the punch was on the mark although it also knocked the stock market for a loop. This reflected speculation in the equity market.

PTT president Prasert Bunsam-pan said although his company's stock lost 12 per cent, the drop was temporary.