CURRENCY
The baht could reach 30.70 to the US dollar in 2011 thanks to capital inflows and a current account surplus, says chief economist Sethaput Suthiwart-Narueput of Siam Commercial Bank.
A stronger baht would be moving in line with regional currencies under the Asia Dollar Index, as the dollar is expected to continue to weaken due to the sluggish US economic recovery.
The baht has been one of the best performers in the region this year, and traded yesterday at 31.17/20 to the greenback. This year the baht has strengthened nearly 7% against the dollar, second only to the Malaysian ringgit's 9% rise among Southeast Asian currencies.Dr Sethaput said foreign capital was expected to continue to flow into Asia in search of higher returns on investment. Thailand's stock and bond market would benefit from the fund inflows, a key factor for the baht appreciation. By the end of 2010, the bank estimates the baht will strengthen to 31.10 to the dollar.
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About the author
- Writer: Somruedi Banchongduang
- Position: Business Reporter
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