KBank:Thai baht should weaken later this year

BANGKOK, February 21 (TNA) - Bangkok-based Kasikornbank (KBank)has projected that the Thai baht should appreciate to a peak next month, before beginning to depreciate as of April. Kobsit Silpachai, KBank's economic and capital market research head, made the projection on February 20, saying that the Thai currency could strengthen to 30.80 baht a US dollar, its peak in five years, next month. Kobsit explained that Thailand's current account surplus remains high next month, thanks to the growing domestic tourism during festivities early this year, while the US dollar remains weak as intended by the US government. Kobsit noted that the Bank of Thailand (BOT) needs to take its careful steps and actions to deal with the strengthening Thai currency against the US dollar because Washington may implement trade protectionist policies against Thai exports if the BOT contains the appreciation of the Thai currency against the greenback more than 2 per cent amid Thailand's trade and current account surplus with the United States as high as over 20 billion US dollars and about 8 per cent of the country's gross domestic product (GDP) respectively. However, Kobsit foresaw that the Thai baht should begin depreciating as of mid-April 2018, when there should be more capital outflows as listed corporates need money, expected to be as high as about 37 billion baht totally, for their annual dividend payment to their shareholders and Thailand's current surplus should, thus, decline in line with a drop in international visitors to the Thai Kingdom during the yearly low travelling season period. According to the KBank executive, the Thai baht could depreciate to stand around 32 baht a US dollar late this year, which should boost Thai exports. (TNA)