Bangkok (VNA) – The Bank of Thailand is monitoring the movement of the THB as it strengthens against the USD, in line with several major regional currencies, influenced by both internal and external factors.
Central bank governor Sethaput Suthiwartnarueput said on August 28 that market expectations of a potential policy rate cut by the US Federal Reserve are pressuring the USD, contributing to its depreciation against the THB.
Setthaput noted that for Thailand, gold imports are another factor supporting a stronger baht compared with its regional peers.
On a year-to-date basis, the THB, SGD, and MYR have all strengthened against the USD. The THB, which was trading at 34 to the USD on August 28, has appreciated by 0.6% this year. The SGD is up by 1.4%, and the MYR by 5.8%, according to Kasikorn Research Center.
Sethaput said the central bank is prepared to intervene appropriately if the THB moves irregularly against the greenback.
He also said Thailand’s economy is gradually improving. GDP growth was 1.6% year-on-year in the first quarter, rising to 2.3% in the second.
For the second half of this year, the central bank expects growth to continue, albeit at a slower pace compared to 2023. It projects GDP growth rates of 2.6% for 2024 and 3% for 2025, returning to its potential./.
