December 16, 2007
Baht to continue strengthening against US dollar
The Thai baht is expected to continue appreciating against the greenback next week as exporters are believed to still be selling dollars, more capital inflows are moving into Thailand and, most importantly, key US economic data is yet to be released, according to a report released by Kasikorn Research Center.
On Friday, the baht closed at about Bt33.60 against the dollar in the Asian market compared to Bt33.72 a week ago as exporters slowed down selling the greenback.
On the domestic front, commercial banks will have to submit their fortnightly reserves to the central bank on Tuesday while they also at the same time have to prepare enough cash for an expected huge withdrawals for the upcoming festive season.
Exporters, on the other hand, are anticipated to continue selling dollars on worries about the US economy after former US Federal Reserve chairman Alan Greenspan warned in an interview which was to air yesterday that chances of a recession in US are growing due to several negative factors including housing market slump, credit crisis and turbulence on Wall Street.
These factors are hurting the US economic growth, he said.
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