Investors said they focus on long-term, warned of currency risks

The Bank of Thailand warns investors to take precautions against currency risks after U.S. economic conditions contributed to fluctuations in exchange rates baht up to 10 percent, although the central bank itself insists that it is well able to cope with such volatility.
Thai investment abroad, in the first eight months of 2013, touched U.S. $ 5,500,000,000 (Bt170 billion), up from $ 7.8 billion in the same period last year, and fiscal measures are being considered to make it easier for Thai companies to become more active abroad.
In all of 2012, foreign investment in Thailand amounted to $ 12.7 billion.
Ruengvirayudh Pongpen BOT deputy governor said the exchange rate volatility baht-dollar peaked at 10 percent this year mainly due to the U.S. economic crisis. But the movement of the Thai currency was in line with its regional peers.
He warned investors not exposed to too much risk to take just a myopic at once with market volatility is likely to resume if the U.S. changes its policies.
Investors should consider the potential impacts of volatility and their own ability to absorb them, he said.
Money markets are likely to see fluctuations, but it is difficult to predict these precisely because they depend heavily on the economic problems of the United States. One of these problems is coming next year is a renewed political battle over the U.S. debt ceiling, which must be dealt with in February.
But despite the market volatility, the Bank of Thailand says it is willing to keep the baht stable. Although foreign investment in Thailand could accelerate capital flight, Pongpen believes that investors should ignore short-term volatility and long-term plan, as offshore investment help diversify risks and promote long term growth.
The companies in the energy and industry have already settled overseas to reduce production costs.
Much of the investment in Thailand has entered Singapore, as the country has laws that promote the inflow of foreign capital.
Here at home, the Fiscal Policy Office is considering tax measures to reduce the costs of overseas investment in Thai companies, including direct investment and acquisitions. This study is expected to be completed soon.