1.   But financial markets confounded the doomsayers, with the baht strengthening and bank stocks rising.

2.   Analysts and foreign exchange dealers expect the baht to strengthen in the coming months, as funds flow in for equity and direct investments.

3.   Bank of Thailand Governor Chatu Mongol Sonakul told a news conference Wednesday that the baht has strengthened on a current account surplus and inflows of foreign investment.

4.   He said the baht would strengthen within a few months with the expected increase in exports.

5.   However, lending rates are not expected to go down until the baht strengthens and the liquidity problems are solved.

6.   If the negotiations are successful, the baht should strengthen to a certain degree.

7.   Siri said the central bank does not think that the baht can strengthen if the interest rates remain high because the economy will continue to experience the doldrums.

8.   THE baht may be strengthening, but staff lay-offs continue as companies in Thailand try to improve their bottom lines and cash flow by reducing staff numbers.

9.   The baht strengthened slightly during the day, while there was negligible movement in the stock market.

10.   Traders and analysts expect the Thai baht to strengthen on the back of these inflows in coming months.