Thai baht reaches strongest level in 2 years

By APD writer Chen Jiabao

BANGKOK, July 18 (APD) -- Thai baht closes at 33.59 baht against the U.S dollar on Tuesday, reaching to a peak in the past two years.

The baht skyrockets with other Asian currencies, hitting its strongest level since June 2015, said Kittipol Puksamatanan, a currency and capital markets strategist of the Krung Thai Bank.

The baht edged up to 33.71 to the dollar on Monday.

Kittipol observed that the dollar has languished with no signals of getting strong again in the short term, which contributes to the rise of the Thai baht.

The massive sale of the U.S dollar and the central bank's reluctance to intervene also result in the soar, according to Kittipol.

Observers in capital market pointed out that the recovery of export and tourism lead to the surge of foreign exchange reserve. A big inflow of foreign capital helps strengthen the baht.

Some said that the recovery of China's economy gives rise to the growth of emerging market, leading to the soar of the baht.

Kittipol predicted that the baht would keep strong at a level of 33.50 to 33.60 against the U.S dollar in a short term.

(ASIA PACIFIC DAILY)