That is exactly connected to Political issues. Some economists said, current Gov has intentionally to make Baht stronger than what it should be and they are getting profit from buying foreign currencies, e.g. US$ and later on (about the end of this year or early next year), they will force Thai Baht value lower as this Gov is not really stayble. The economists also said, that it is very rare that Thai Gov will allow their Baht to be strong as they are export country, therefore, in this case there is something behind it.
The reason why the (Thai Baht is Strong) has nothing to do with their politics or Abhisit's government at all.. The main reason: the U.S.Dollar has been slide, if you want to know, you look no further than a weak jobs. Deploring Excess volatility and disorderly movments in Exchange-Rate.. Almost ten percent Unemployment convinced Market that Montary policy will remain loose Regarless of the Dollar weak..... and i also think that part of the Obama administration's plan and of the way a country can get out of the Debt burden is to devalue.... you can look at the Japan during the 70-80 and , the more the dollar devalued against the (Yen) in 70-80. the more the Japan gain share in '' Value-added'' Manufacturing, Using capital from weak currency countries to increase productivity.... and China is doing the same now, It watches in chargrin as the U.S. pleads with to strengthen the (Yuan) , adding productivity fast with Dollar rushing it way in seach of currency stability.. Asia's small, Open economies are cought in the crossfire of a tussle between United States and China over wether the (Yuan) should be strengthen against the dollar, to fix the lopslided Global economy... Also, the greenback's slide against asian currencies is dealing double whammy to the region's export dependent economies. hitting their exports and eating away their massive foreign exchange holdings. So dollar decline as necessary adjustment to reduce global trade imbalances, but it has not weakend significantly against the (Chinese Yuan) whose value is tightly managed by Beiging and refused fix or change their exchange rate... So as for our (Kip), also strong too...
