Exim Bank Forecasts Stronger Baht This Year

EXIM Bank forecasts stronger baht this year

BANGKOK: -- The Export Import Bank of Thailand (EXIM Bank) has forecast that the Thai baht will further strengthen against the US dollar this year.

According to the EXIM Bank, the Thai currency is likely to be stronger to around Bt38 a US dollar this year.

This is due to the weakening US dollar caused by a huge trade deficit in the US economy.

The EXIM Bank said that Washington could experience a trade deficit of up to US$40 billion.

The stronger Thai baht is likely to be in the same direction of other major currencies, including the Japanese yen and the euro of the European Union (EU), according to the EXIM Bank.

The stronger Thai baht could affect the kingdom's exports to overseas markets, the EXIM Bank cautioned.

The bank also warned currency traders to be well aware of the currency trends to prevent a possible loss in their future currency trading.

The Thai baht has strengthened to around Bt39-40 a US dollar so far.

--TNA 2005-02-11