BANGKOK, Aug 30 (Reuters) – Thailand’s strong baht and stock market rally are in line with economic fundamentals, the central bank governor said on Wednesday, as the currency hovered around 28-month highs against the U.S. dollar.
The moves have been driven by stronger economic growth and easing political uncertainty, Veerathai Santiprabhob told reporters.
Southeast Asia’s second-largest economy expanded a more than expected 3.7 percent in April-June from a year earlier, the fastest pace in over four years.
Former Prime Minister Yingluck Shinawatra was a no-show last week for a verdict against her over a rice scheme. The verdict against her could have reignited tension, though the army has largely snuffed out open opposition.
The baht traded at 33.19 against the dollar on Wednesday. It has appreciated 7.9 percent against the greenback this year, becoming Asia’s best performing currency.
Thailand’s main stock index hit over four-year highs on Wednesday as foreign funds bought into Thai assets.
(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Shri Navaratnam)