Anxiety over the domestic economy and drought has helped sap the baht, which is at its weakest since 2009, according to a Bank of Thailand’s deputy governor.
The central bank’s Chanthawan Sucharitkul said such internal factors along with signals the US Federal Reserve would hike interest rates this year were pressures on the baht, which today slipped further against the dollar to 34.89. General weakness of the dollar has offset further depreciation.
Although it could spell trouble for the real estate sector, loss of currency is a boon to Thailand’s flagging exports, and central bank Governor Prasarn Triratvorakul said earlier this week the changes are a correction.
Over on Ratchada, the SET is at a year low and sales could further erode the baht’s vitality.
