Yesterday, Thailand’s currency made a remarkable leap upwards in value, reaching a valuation of 29 baht per US dollar for the first time since 1997.
This uptick represents a 1% rise from April 5. In its coverage of the baht’s rapid gains, Bloomberg speculated that the currency’s high value is attributable to quantitative easing measures being undertaken by Japan. Low interest rates in that country have flooded the region with available capital, much of which has found its way to Thailand.
The Bank of Thailand described the currency’s gains as “too fast” and brought up the possibility of capital controls in order to curtail the baht’s rapid expansion.
