Strong currencies unsettle Asian banks

[Flashermac]

Bangkok Post

29 Sep 2010

 

 

Central banks in Asia are quite concerned about the sharp appreciation of regional currencies, Bank of Thailand assistant governor Suchada Kirakul said today.

 

"Central banks in some countries have intervened in the currency market to prevent their respective currencies from strengthening too fast," Mrs Suchada said.

 

The baht had strengthened about nine per cent since the beginning of this year while the fluctuation value stood at three per cent.

 

[color:red]She said the appreciation was caused by the surge in capital inflow due to the weak economies of G3 countries.[/color]

 

She said the United States consumer confidence index remained negative. Investors feared that the Federal Reserve will implement another round of quantitative easing, which would result in a low policy interest rate for a longer period of time.