Bangkok: Thailand's baht saw little change as dollar sales from exporters were offset by suspected central bank intervention to slow gains in the local currency.
Thai Finance Minister Korn Chatikavanij said on Friday the government will continue to monitor the baht closely next year. Prime Minister Abhisit Vejjajiva said the same day that gross domestic product may expand almost eight per cent in 2010, the most in 15 years, and sales of Thai goods overseas are expected to increase 25 per cent. The finance ministry yesterday raised its 2010 economic growth forecast to 7.8 per cent from 7.5 per cent, citing an increase in exports.
"The baht has been very tight-ranged since [Monday] as there is exporter interest to sell dollars above 30.20," said Panida Viraphanich, head of trading at TMB Bank Pcl in Bangkok.
"There is also some month-end dollar demand from importers."
The Bank of Thailand is also curbing gains in the Thai currency, she said.
According to data compiled by Bloomberg, the baht traded at 30.18 per dollar yesterday. It has appreciated more than 10 per cent this year and may strengthen 4.1 per cent by end-2011, according to the median estimate of economists in a Bloomberg survey.
The currency may trade between 30.15 and 30.20 today, Panida said, adding that "most people are still expecting the currency to strengthen next year".
