Baht closes at 33.66 baht/dollar, the strongest in 25 months

  • Thai bank employee counts bundles of Thai baht banknote at Krung Thai bank in Bangkok on October 18, 2010. A tidal wave of speculative money is pouring into Asia and driving up regional currencies, stoking political tensions in the run-up to crunch summits as nations raise the barricades to protect exports. AFP PHOTO/PORNCHAI KITTIWONGSAKUL / AFP PHOTO / PORNCHAI KITTIWONGSAKUL

The Thai baht closed at 33.66 baht against the US dollar, the strongest in 25 months after the currency was trading between 33.73-33.75 baht/dollar throughout Monday (July 17), said Jitipol Puksamatanan, a currency and capital markets strategist of the Krung Thai Bank.

He attributed the quick strengthening of the Thai baht to massive sale of US dollars coupled with the inflow of foreign capital, including fund flow for the takeover of LH Bank.

Mr Jitipol noted the quick strengthening of the baht coincides with the weakening of the US dollar which is unlikely to get stronger while the Bank of Thailand is reluctant to intervene.

He predicted that the Thai baht would get stronger next week to 33.60 baht/dollar and may rise to 33.50 baht/dollar if fund flow continues to pour into the country.