He acknowledged that inflows to Thailand in the past weeks have driven up the baht value.

He noted that the appreciation hurts exporters, particularly those in the food industry which operates on small margins. The impacts will be huge for those relying on locally-sourced raw materials.

He said that the strong baht effect would be felt the most during September and October, the period when Thai exporters usually receive the biggest chunk of their annual orders.

At 5.31pm, the baht stayed at Bt34.68 per dollar, gaining 0.77 per cent from the previous month. It gained over 3 per cent in the past 12 months.

According to the Bank of Thailand, the Kingdom attracted foreign funds worth nearly US$6 billion in the first seven months of this year.