Baht Strengthens Due To Heavy Selling Of Dollar

[george]

Baht strengthens due to heavy selling of dollar by exporters

BANGKOK: -- Thailand's baht strengthened slightly to 34.04-34.05 to the US dollar in the Tuesday morning trading session due to the heavy selling of the greenback by exporters, according to a money dealer at BankThai Plc.

The dealer said that exporters had rushed to sell dollars since they were concerned that the dollar would further weaken against other currencies. It resulted in the baht appreciating slightly in relation to its position on Monday's trading

The baht still moved in a narrow range, but is likely to strengthen and break through the 34 level to stay at around 33 to the dollar.

"Exporters rushed to dump the dollar when the baht rose through 34.10 to the dollar on Monday's trading. The Bank of Thailand appeared to intervene in the currency movement," said the dealer, "but should the dollar weaken significantly against other currencies, the bank is not in a position to resist the trend."

It is rather difficult to predict the direction of the currency movement now that the market is waiting and trying to determine whether the US Federal Reserve would further cut key interest rates as many expected at its meeting on Wednesday.

--TNA 2007-10-30