By Orathai Sriring and Thanadech Staporncharnchai

BANGKOK (Reuters) -The strengthening of Thailand’s currency to a four-year high is a threat to exports and tourism, two key growth engines for the struggling economy and posing a major economic headache for the incoming government of Prime Minister Anutin Charnvirakul.

The baht is up 8% against the U.S. dollar this year, the second-largest gain amongst Asian currencies, behind only the Taiwan dollar.

“A strong baht reduces export and tourist revenue via both pricing and volume effects,” said Kobsidthi Silpachai, head of Capital Markets Research at Kasikornbank.

“The baht’s strength comes at a bad time ahead of the peak tourist season, which is likely to prompt holiday makers to shop elsewhere for better value.”

Southeast Asia’s second-

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