Baht Appreciation Worries Industry Council

The Federation of Thai Industries has expressed concern over the influx of foreign capital into the country following the dollar's depreciation which will push the baht pass the 29-baht mark as well as increase inflation.

It is confident the central bank will closely monitor the rate so that it is in line with the market.

Federation of Thai Industries, or FTI, President Payungsak Chartsuthipol stated that the private sector is worried that the baht exchange rate may exceed the 29-baht mark against the US dollar due to the dollar's weakening as investor confidence towards the US and its ability to come to a decision on the expansion of its debt ceiling decreases.

Foreign capital has continually streamed into the Thai stock market due to Thailand's higher interest rate compared to the US market. The flow has caused the region's currencies to appreciate.

Payungsak said that although FTI businesses are not severely affected by the exchange rate, industries that rely heavily on resources and materials are being affected greatly due to the high costs of materials as revenue from export will be slashed.

Nonetheless, the FTI chairman is confident the Bank of Thailand has been closely monitoring exchange activity and will carefully consider managing the situation as well as the inflation rate which is one of the private sector's main concerns.

FTI Vice President Thanit Sorat also commented on the worrying situation stating that US economic recovery is still very fragile and if the US government is unable to expand its debt ceiling, a major global economic crisis could occur causing a large amount of capital to flow into Asia.

-- Tan Network 2011-07-29

Baht appreciation worries me too....I just hate getting less for my USD....guess I better get use to it.

Baht appreciation worries me too....I just hate getting less for my USD....guess I better get use to it.

You might want to get out of the USD$.

america = newly de-industrialized country.

Baht appreciation worries me too....I just hate getting less for my USD....guess I better get use to it.

You might want to get out of the USD$.

america = newly de-industrialized country.

But the U.S. govt just keeps sending me more at the end of each month. Oh well, I'll keep changing them into baht to pay for my Chang beer.