Thai central bank steps up FX volatility

93
1
Thai central bank steps up FX volatility

The central bank of Thailand has been in the foreign exchange market to reduce currency volatility, as the Thai baht currency hovered at 16 year lows against the dollar, the central bank said on Saturday.

The central bank said the baht has fallen 11.7 per cent against the dollar this year, which has been driven by dollar strength.

Deputy Bank of Thailand Governor Mathee Supapongse told reporters that the baht index was stable against other currencies, while the country's external position and banking system remained strong.

He said that the BOT had no target for baht levels and that we've entered the market sometimes to slow down the volatility in the baht.

He said that the international reserves of Thailand were not affected by currency intervention but rather by asset valuations.

Despite wide Thai-U. Mathee said that Thailand has attracted capital inflows from S. rate differentials.

Foreign investors have sold 33 billion baht of bonds and bought 150 billion baht $3.97 billion of Thai shares this year.

Governor Sethaput Suthiwartnarueput said that gradual and measured policy tightening was appropriate to support Thailand's still slow economic recovery, but he was ready to adjust if needed.

The BOT raised its key interest rate by a quarter point to 1.00 per cent to tame 14 year high inflation on Wednesday.