BANGKOK, June 14 Thailand's central bank expects
no major market volatility if the U.S. Federal Reserve raises
borrowing costs as that has largely been discounted, the
governor said on Wednesday.
The recent strengthening of the baht has been
driven by increased foreign fund inflows because of external
factors, Thailand's stronger economy and its current account
surplus, Bank of Thailand Governor Veerathai Santiprabhob told
There is also some money invested in Qatar flowing back into
Thailand following problems in that country, he said.
The baht traded at 33.91 per dollar at 0434 GMT,
near two-year highs.
The Fed is expected to increase interest rates by another 25
basis points at its June 13-14 meeting.
Veerathai also said a reduction in short-term central bank
bond supply at weekly auctions had resulted in more foreign
funds flowing in longer-dated debt.
($1 = 33.9200 baht)
(Reporting by Kitiphong Thaichareon; Writing by Orathai
Sriring; Editing by Sunil Nair)