Thai baht hits 10 year record high.
Thai baht hit the highest record in ten years as it opened Thursday morning at Bt33.01 to Bt33.02.
Currency traders attributed the rise to the US Federal Reserve’s decision to cut the interest rate by another 50 basic points last night to 3 per cent, prompting certain speculators to buy Thai baht.
As a result, Thai policy rate is 25 basis point higher than the US rate.
Currency traders expected that if the US Federal Reserve further cut the interest rate again in March. The difference between Thai and the US rates will be higher. This may prompt much higher inflow of capital into Thai market. This could lead to further rise of Thai baht.
Source: The Nation - 31 January 2008
taken from http://www.thaivisa.com