Thai baht continues slide on instability, QE tapering
The Nation/Asia News Network
December 25, 2013, 12:18 am TWN
Political instability and the U.S. tapering of its bond-buying program are the main reasons behind the sharp depreciation in the Thai baht, said a Bank of Thailand (BOT) official.
However, BOT Spokesperson Roong Mallikamas noted that the baht has moved in line with regional movements and foresaw further declines.
“Overall, the baht is still moving in line with regional currencies. Political instability however exacerbates the situation, leading to a sharp fall in some periods. Investors are concerned with the instability,” she said.
The baht dropped 0.2 percent to 32.73 per dollar as of 3.38pm in Bangkok, and earlier reached 32.81, the lowest level since June 7, 2010, data compiled by Bloomberg show. It lost 2.1 percent this month, the third-worst performer among Asia's 11 most-traded currencies, after the Indonesian rupiah and Malaysian ringgit.