Baht at 4-month low on growth fears

The baht had declined 2.9 per cent the past month, the third-worst performer - after the Indian rupee and Philippines peso - among 10 most-traded Asian currencies.

The Bank of Thailand yesterday said it had acted to curb excessive moves in the currency, without saying whether it had bought or sold dollars.

"The aim of the central bank is not to influence the direction of the baht, but not to have it whip around too much," said Chatchawan Jumruswittayawong, a Bangkok-based foreign-exchange trader at Bank of Ayudhya.

"The trade balance is in a deficit, and that's putting pressure on the baht," he said. "There is also outflow from stocks."

The baht dipped 0.3 per cent to 32.70 per dollar in Bangkok yesterday afternoon.

The currency "is weakening on capital outflows from the stock market", assistant Bank of Thailand governor Suchada Kirakul said on Tuesday.

Overseas investors sold Bt3.7 billion more in stocks than they bought on Tuesday. Stocks edged up two points yesterday.

Ten-year government bonds advanced, snapping a four-day decline yesterday.

The yield on the 5.125-per-cent note due in March 2018 fell nine basis points to 5.33 per cent, according to the Thai Bond Market Association.

The price declined 0.68748, or Bt6.87 per Bt1,000 face amount, to Bt98.39993.

Thailand's $1.66-billion current-account deficit in April was the widest gap since June 2005. Higher fuel costs pushed imports to the highest level since February 2000, according to data from the central bank.