Thai baht predicted to rise further in next months. (Photo: AFP/VNA)

Bangkok (VNA)
– Kasikornbank (KBank), the fourth largest lender by assets of Thailand, predicted the baht will continue to appreciate against the US dollar in the next few months, following brisk gains in January.

The bank predicted the Thai baht to rise to 31.2 THB versus USD next month and reach 30.8 THB per USD in April because of the higher current account surplus, driven by revenue from tourism and exports as well as investment in Thai bonds.

Head of KBank’s capital market research unit Kobsit Silpachai forecast that the baht would reverse the trend in May as it is the time listed companies pay dividends. Some SET-listed firms announced they would pay a total of 37 billion THB in dividends for their 2017 operations. Those firms paid out 70 billion THB in 2016.

Kobsit said the Thai currency will be more volatile throughout 2018 amid both local and international uncertainty. US monetary policy is the main factor pressuring the US dollar against other currencies worldwide.

The baht, which has risen 3.7 percent against the US dollar since early this year, is the best performing currency in Asia.-VNA