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Thai central bank says baht is undeterred by Federal Reserve's rate increase.
Byline: Parista Yuthamanop
Jul. 6--Last week's quarter-point increase in short-term interest rates by the US Federal Reserve has had little impact on the baht, according to M.R. Pridiyathorn Devakula, the governor of the Bank of Thailand.
He said the central bank had detected no abnormal trends in capital flows over the past few days.
Some analysts have suggested that the central bank may soon look to raise interest rates to prevent the gap between local and international rates from widening and thus influencing capital flows. A major increase in capital outflows would place pressure on the baht to depreciate against the dollar.
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