The continuing strengthening of the baht, which touched a 19-month high at 29.57 baht to the US dollar on Tuesday, was not a cause for concern, Bank of Thailand (BoT) governor Prasarn Trairatvorakul said on Wednesday.
This was caused by foreign direct investment inflow on the back of Thailand's continuing economic expansion and on reports that the country's credit rating had been raised, Mr Prasarn said. Fitch Ratings raised its assessment on Thailand by one level to BBB+ last week, citing a resilient economy and a more stable political environment.
He said the central bank already had reported the baht's appreciation to the BoT's Monetary Policy Committee and that there was no need to call an urgent meeting on this matter.
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