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Baht further slides against dollar

Political instability and the US tapering on the bond-buying programme are the main reasons behind the sharp depreciation in the Thai baht, said a Bank of Thailand 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 per cent 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 per cent this month, the third-worst performer among Asia’s 11 most-traded currencies, after the Indonesian rupiah and Malaysian ringgit.

Roong noted that any factor can cause irregularity due to thin trading during the end of the year.

The Bank of Thailand would closely monitor the situation, to ensure that the baht reflects economic fundamentals and is in the level that accommodates both exporters and importers, she said.


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