BANGKOK May 29 Thailand's central bank remains
worried about a strong baht and short-term capital
inflows, the governor said on Monday, as the currency traded
near its highest against the dollar in more than 22 months.
The central bank is ready to act on any excessive moves in
the baht, Veerathai Santiprabhob told a seminar.
"If there are large fund inflows, and causing high
volatility in the baht, it's the central bank's duty to act on
it with instruments available," Veerathai said.
The baht had gained more than other currencies over the past
week, the governor said, because analysts interpreted a monetary
policy committee statement on May 24 to mean the central bank
was unconcerned about the baht's strength. That was wrong, he
"We are still worried about the baht's strength and
short-term fund inflows parking in Thailand," Veerathai said.
But except for the past week, the baht has been moving in
line with regional currencies since the start of the year, he
said. The baht traded at 34.12 per dollar on Monday, after
reaching 34.04 on Friday, its highest in more than 22 months.
Veerathai said a weaker dollar and a clear recovery in the
Thai economy were also factors in the baht's appreciation.
The private sector should hedge against currency risks as
high volatility in global financial markets will continue, he
said, adding more than 60 percent of Thai exporters did not
(Reporting by Kitiphong Thaichareon; Writing by Orathai
Sriring; Editing by Alison Williams and Larry King)