Baht strongest in 10 years

Prime Minister Surayud Chulanont said on MOnday that the Finance Ministry and the Bank of Thailand have discussed on the baht movements. He insisted that the government would ensure that the baht appreciation would not exceed those of neighbouring countries and trade partners.

 He also urged exporters not to sell dollar now, to reduce the pressure on the Thai currency.

Meanwhile, Bank of Thailand Governor Tarisa Watanagase insisted on Monday that the central bank has done everything to manage the baht appreciation. Finance Minister Chalongphob Sussangkarn last week criticised the central bank, citing that the baht appreciation is stronger than other regional currencies.

The Thai currency is likely to further strengthen, on the expectation that the US Federal Reserve Board may cut its policy rate by another 50 basis points to shore up the mortgages-hurt domestic economy.

- The Nation