Now is the right time for the central bank to cut its interest rate to curb the strength of the baht, says the National Institute of Administration (Nida).
The baht has made big gains this year because of massive foreign capital inflows reflecting foreign investors' confidence in Thailand's strong economic fundamentals, said Montree Sokatiyanuruk, director of Nida's executive MBA executive programme.
The baht peaked at 28.56 to the US dollar on Monday, which represented a rise of 6.7% from the start of the year, the highest in Asia. Most of the gains have been driven by foreign investor demand for baht to purchase Thai government bonds.
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