Baht weakens on concerns over renewed violence: BoT

BANGKOK, May 15 (TNA) – The baht has continued weakening because investors are concerned over the renewed violent clashes between the military and anti-government United Front for Democracy Against Dictatorship-led protesters, according to the Bank of Thailand (BoT).

BoT Assistant Governor Suchada Kirakul said foreign investors had apparently begun to sell the baht and remit the dollar home to a certain extent.

Sales of the baht are still proceeding although the volume remains thin, she said.

The spate of political violence overnight has shaken investor confidence. Some sold shares and brought money to invest in other instruments, particularly in bonds.

She said the baht is now considered volatile by itself and in tandem with  the global situation, but its volatility is not heavier than that of other regional currencies.

Currency is still moving atn an acceptable level. Although foreign investors sold the baht and purchased dollars to remit money home,  earners of incomes in foreign currencies are waiting for the perfect timing to sell the dollar, resulting in a balancing of the currency movement.

On a comment by a top economist  that the baht was very likely to touch 31.5 to the dollar at year-end, Mrs. Suchada said the currency had both strengthened and weakened.

Although Thailand has experienced internal and external difficulties, its economy continued   growing partly because of the global economic recovery.

She revealed the BoT’s Monetary Policy Committee earlier wanted to see the policy interest rate return to the normal level, but its hope was dashed by the current political crisis. (TNA)