The determinant impacting on bilateral exchange rate : a case study of the Thai Baht against the U.S. Dollar

Abstract

Thailand relies on the openness economy, in which accounted for rather than two-thirds of GDP. Also, the bilateral exchange rate quoting the most is the Thai baht against the U.S. dollar. Thence, this study examines the determinants impacting on it in order to foresee the direction of Thai baht against U.S. dollar. The scope of this study is from January 2001 through December 2019 and tested by the OLS approach. The empirical result for this study shows that the domestic interest rate, foreign interest rate and exports impact and are significant at 1% to this bilateral exchange rate. Meanwhile, the relative price levels do not impact on this quotation.