'Thai baht at normal level'

'Thai baht at normal level'

BANGKOK: Bank of Thailand Governor Pridiyathorn Devakula said on Friday the Thai baht wasn't too strong and was quite fairly valued.

"The baht is not too strong. It's at a normal level because investors have confidence in the Thai economy," he told reporters.

The governor's comments came as the baht continued a gradual appreciation from levels above 42 baht to the dollar last week after the terrorist bombing in Jakarta.

At 0627 GMT, the dollar was quoted at 41.615 baht, down from 41.68 baht at Thursday's Asian close amid general dollar weakness following a power blackout in the northeastern states of the U.S.

Recently, Pridiyathorn's comments on the baht have placed greater emphasis than before on the confidence he believes foreign investors have in the economy and the currency.

But central bank officials reiterated this week that their objective is baht stability, not baht strength.

Since the baht's recent gains have been limited, the governor's comments are in line with the central bank's long- standing policy of buying dollars on weakness to stem volatility and to prevent the baht from appreciating more than other regional currencies against the U.S. dollar.--Dow Jones