Baht Forecast At 35 To Us$1

[george]

Baht forecast at 35 to US$1

BANGKOK: The baht is likely to strengthen further against the dollar this year, possibly reaching 35 baht to the dollar, in light of the United States' failure to reach its projected economic growth amid fears of terrorism, a local financial analyst said.

Satien Tantanasarit, director of DBS Thai Danu Bank's currency management, said the strengthening local currency could reach 37 or even 35 against the dollar this year.

He said the weak greenback caused by slow growth and fears of terrorist attacks would become volatile before the presidential elections.

Mr Satien also said investors' growing confidence about Thailand's economic prospects would help strengthen the baht.

However, he urged business operators not to worry about the stronger baht, saying the Bank of Thailand was keeping an eye on currency market speculators.

Mr Satien noted that capital would flow back into Asian markets this year, citing robust stock markets such as the Stock Exchange of Thailand and the Tokyo Nikkei.

--Bangkok Post 2003-01-04