KResearch: THB weakened by political problem

BANGKOK, 1 May 2010 (NNT) – The Thai baht currency weakened in the past week due to the domestic political problem, according to the Kasikorn Research Center (KResearch).

The appreciation of other currencies in Asia helped shore up the Thai Baht shortly at the beginning of the week but was later defeated by waves of political tension. On Friday, the Thai currency closed at 32.33 THB against the USD, dropping from the previous week, which stood at 32.19 THB.

The weakening of the Thai Baht this week was in reverse to the direction of other currencies in the region due to the pressure from US dollar buy-ups.

The Thai baht currency is expected to move within the range of 32.00-32.40 THB per USD next week. The factors to be monitored are the political situation, inflation rate in April, the Bank of Thailand’s measure for currency stabilization, and the direction of regional stock markets and currencies.