'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