Baht and Other Regional Currencies Continue to Strengthen

The Minister brushed aside a news report that the baht was appreciating the most in the region, saying the Malaysian Ringgit actually appreciated even stronger than the baht. He reaffirmed that the baht was moving in line with other currencies in the region.

Mr. Korn explained that the majority of currencies in the region had been appreciating because of the depreciating US dollars. He noted the Thai baht had been appreciating for years, and it did not affect exporters much because other currencies were also moving in the same direction.

The Minister, however, indicated that the purchasing power of trading partners should be monitored closely because their economic slowdown would indeed affect the Thai export sector.

As for risk factors for Thailand in the latter half of 2010, Mr. Korn believed that they would come from external factors rather than internal ones.