The kip appreciated by 2.7% against the US dollar in 2009, to average K8,516:US$1 over the year, and by another 3.1% in 2010 to reach K8,058:US$1 by the end of the year. High global prices for Laos's commodity exports and continued inflows of foreign investment will continue to support the kip in 2011, but rapid inflation and the persistent current-account deficit will cause the value of the currency to fall in 2011 from its peak at end-2010. The kip will then fall back again in 2012, to an average of K8,137:US$1. Given the importance of Thailand as a trading partner, the Lao authorities will be keen to minimise dramatic shifts in the value of the kip against the baht and will intervene in currency markets to keep the rate as stable as possible.