Thai baht drops amid new protests

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Thai protestThailand’s baht dropped to a seven-week low and bonds fell as anti-government protests sparked by an amnesty bill dim the outlook for the economy and prompt overseas investors to pull funds from the country’s assets, the Bangkok Post reported.

The demonstrations against the bill granting amnesty for political offences are beginning to impact the economy, with tourism and investor confidence the most affected, Bank of Thailand governor Prasarn Trairatvorakul said at a seminar in Bangkok on November 10. However, most emerging-market currencies in the region fell as improved US jobs data boosted speculation the Federal Reserve will cut stimulus this year.

The baht depreciated 0.to 31.63 on November 11, the weakest level since September 19, according to data compiled by Bloomberg. The currency dropped 0.9 per cent last week.

One-month implied volatility in the baht, a measure of expected moves in exchange rates used to price options, climbed 19 basis points, or 0.19 percentage point, to 6.06 per cent.

Global funds pulled a net $876 million from Thai bonds and equities this month through November 8. The SET (SET) Index of shares slid in each of the last three weeks, sliding 1.7 per cent to 1,405.03 in the period ended November 8.

Thai police said they will tighten security around the country’s parliament in Bangkok on concern protesters will use Monday’s Senate vote on the amnesty bill as a pretext to incite violence and destabilise the government. “Groups will try to step up protests and create chaos,” police spokesman Piya Uthayo said, adding that authorities would not use force to disperse the rallies unless demonstrators threatened to enter restricted areas.

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Reading Time: 1 minute

Thailand’s baht dropped to a seven-week low and bonds fell as anti-government protests sparked by an amnesty bill dim the outlook for the economy and prompt overseas investors to pull funds from the country’s assets, the Bangkok Post reported.

Reading Time: 1 minute

Thai protestThailand’s baht dropped to a seven-week low and bonds fell as anti-government protests sparked by an amnesty bill dim the outlook for the economy and prompt overseas investors to pull funds from the country’s assets, the Bangkok Post reported.

The demonstrations against the bill granting amnesty for political offences are beginning to impact the economy, with tourism and investor confidence the most affected, Bank of Thailand governor Prasarn Trairatvorakul said at a seminar in Bangkok on November 10. However, most emerging-market currencies in the region fell as improved US jobs data boosted speculation the Federal Reserve will cut stimulus this year.

The baht depreciated 0.to 31.63 on November 11, the weakest level since September 19, according to data compiled by Bloomberg. The currency dropped 0.9 per cent last week.

One-month implied volatility in the baht, a measure of expected moves in exchange rates used to price options, climbed 19 basis points, or 0.19 percentage point, to 6.06 per cent.

Global funds pulled a net $876 million from Thai bonds and equities this month through November 8. The SET (SET) Index of shares slid in each of the last three weeks, sliding 1.7 per cent to 1,405.03 in the period ended November 8.

Thai police said they will tighten security around the country’s parliament in Bangkok on concern protesters will use Monday’s Senate vote on the amnesty bill as a pretext to incite violence and destabilise the government. “Groups will try to step up protests and create chaos,” police spokesman Piya Uthayo said, adding that authorities would not use force to disperse the rallies unless demonstrators threatened to enter restricted areas.

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