BANGKOK, March 20 (Reuters) - Thailand’s strenghening baht is still in line with the country’s economic fundamentals, a finance ministry official said on Monday, as the currency hit a more than five-month high against the dollar.
The central bank has sufficient tools to handle capital movements but it may not need to act on the currency now, Somchai Sujjapongse, the ministry’s permanent secretary told reporters.
“If the baht is strengtening along with economic fundamentals, the central bank does not have to intervene too much and can let it move in line with market forces,” he said.
The baht traded at 34.7 per dollar on Monday, and has appreciated by 3 percent this year. Traders said it has been lifted by inflows from foreign funds. (Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Richard Borsuk)