July 4 (Bloomberg) -- Philip Wee, a senior currency economist at DBS Group Holdings Ltd. in Singapore, comments on the outlook for the Thai baht in an interview today.
The baht advanced 1.1 percent, the most since February 2008, to 30.46 per dollar as of 1:34 p.m. in Bangkok, according to data compiled by Bloomberg, after a party led by exiled premier Thaksin Shinawatra’s sister was forecast to win a clear majority in elections held over the weekend.
DBS predicts the currency will strengthen 5.8 percent to 28.80 per dollar by year-end and 8.8 percent to 28.00 in 12 months.
“I think the Thai elections have proceeded better than what most people had hoped, and they may be the first step to a politically more stable Thailand.
“ Thailand manages its exchange rate in line with its regional partners. The Thai baht should benefit from the region’s growth engine.
“Asia is still on a tightening mode on inflation. As long as the growth outlook can overcome global uncertainties, including Greece’s debt crisis and Japan’s crisis, the market will see an upward trend.”
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