Baht falls to nine-month low

However, the Election Commission postponed a deci¬sion on whether it will seek dissolution of the People Power Party for vote buying.

That decision will now be made on September 2.

It said more information needed to be reviewed before a decision to send the matter to the Constitution Court could be made.

The baht has declined 1.5 per cent so far this month as global funds cut equity hold¬ings amid political uncertainty, and after a central bank official said there was "no need to panic" about currency slide.

The currency fell 0.5 per cent to 34.03 baht to the US dollar as at 1.57pm yesterday, according to Bloomberg data. That is its weakest since November 9.

A Bank of Thailand senior director, Pongpen Ruengvirayudh, said it would support the baht. She will not confirm if the bank is buying the unit.

Equity outflows are putting pressure on the baht as foreign investors continue to pull out of local issues, Pongpen said.

"We will enter the market if required, but I can't say whether we are doing it now or not," Pongpen said. "Money is flowing out steadily, but the amount is not that great."

Bank Governor Tarisa Watanagase last week said fur¬ther interestrate increases may not be needed to temper inflation. Policy makers, who increased the oneday bond repurchase rate to 3.5 per cent in July, meet a week today to decide on rates.

Overseasfund managers are net sellers of US$194 mil¬lion (Bt6.6 billion) in local issues this month, according Bloomberg data.

The AuditorGeneral is investigating if Finance Minister Surapong Suebwonglee misused his power by awarding a contract without putting it out to com¬petitive bidding, according to a source close to the investiga¬tion.

Meanwhile, bank Deputy Governor Bandid Nijathaworn, in charge of financial institu¬tions' stability, is concerned about the impact of global economic slowdown on the Kingdom's exports now many developed countries are slip¬ping into recession.

The recovery of domestic demand, spurred by declining inflationary pressure and gov¬ernment spending, can com¬pensate for an export slow¬down, he said.