Thai baht expected to remain strong next week

BANGKOK, April 21 (TNA) - The Thai baht is expected to remain strong throughout this week and is projected to move within the range of 28.50-28.90 baht against the greenback, according to a report issued by Kasikorn Research Centre. Although the baht ended at 28.58 baht per dollar last Friday, a fresh 16-year high, the report urged currency dealers to monitor continued trend of foreign capital inflows, movements of Chinese yuan and an increased risk of euro zone’s banking system. Also, dealers are asked to monitor key U.S. economic indicators including the April consumer index, total housing sales for March and gross domestic product figures for this year’s first quarter, the report said. The report said the ongoing strengthening of the baht was attributed to net buying of Thai bonds by foreign investors and the strengthening of Asian currencies, including the Chinese yuan. However, Bank of Thailand governor Prasarn Trairatvorakul cautioned late last week that the baht had become too strong and already exceeded fundamental factor. On late Friday, the baht stood at 28.58 baht against the dollar compared to 29.02 baht a week ago. (TNA)