Thai baht falls to record low

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Bangkok-Money-ExchangeThailand’s currency, the baht, fell to a record low of 32.14 to the dollar in early trading on August 27, the lowest since August 2010, on speculation outflows from emerging markets will quicken as the US Federal Reserve prepares to cut monetary stimulus. Government bonds also dropped, and the baht also reached the lowest value against the euro since October 2011, touching 42.98 on August 27.

Global funds sold $917 million more of Thai bonds than they bought in August so far, and pulled a net $903 million from equities, official data show. Thailand’s National Economic and Social Development Board cut its 2013 growth forecast on August 19 as the nation entered a technical recession for the first time since 2009.

Thailand’s gross domestic product unexpectedly decreased 0.3 per cent in the second quarter of 2013 from the second quarter, when it contracted 1.7 per cent. Furthermore, Thailand posted a current account deficit every month in the second quarter, central bank data show.

Morgan Stanley is bearish on the baht’s outlook and Citigroup Inc. is underweight on the currency, according to research reports published yesterday. Goldman Sachs Group Inc. cut the currency’s three-month forecast to 33 per dollar from 31.3, the bank said in a note on August 23.

Bangkok-based Kasikorn Research Center has forecast that the baht will fluctuate within the range of 31.8-32.2 baht per US dollar in the week from August 26 “unless there are major changes in the US’s monetary policy.”

According to the center, the range of Thai baht against the greenback will depend on several factors in the US, such as property sales, consumer, housing and income indexes, among other things, the official National News Bureau of Thailand said.

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Reading Time: 1 minute

Thailand’s currency, the baht, fell to a record low of 32.14 to the dollar in early trading on August 27, the lowest since August 2010, on speculation outflows from emerging markets will quicken as the US Federal Reserve prepares to cut monetary stimulus. Government bonds also dropped, and the baht also reached the lowest value against the euro since October 2011, touching 42.98 on August 27.

Reading Time: 1 minute

Bangkok-Money-ExchangeThailand’s currency, the baht, fell to a record low of 32.14 to the dollar in early trading on August 27, the lowest since August 2010, on speculation outflows from emerging markets will quicken as the US Federal Reserve prepares to cut monetary stimulus. Government bonds also dropped, and the baht also reached the lowest value against the euro since October 2011, touching 42.98 on August 27.

Global funds sold $917 million more of Thai bonds than they bought in August so far, and pulled a net $903 million from equities, official data show. Thailand’s National Economic and Social Development Board cut its 2013 growth forecast on August 19 as the nation entered a technical recession for the first time since 2009.

Thailand’s gross domestic product unexpectedly decreased 0.3 per cent in the second quarter of 2013 from the second quarter, when it contracted 1.7 per cent. Furthermore, Thailand posted a current account deficit every month in the second quarter, central bank data show.

Morgan Stanley is bearish on the baht’s outlook and Citigroup Inc. is underweight on the currency, according to research reports published yesterday. Goldman Sachs Group Inc. cut the currency’s three-month forecast to 33 per dollar from 31.3, the bank said in a note on August 23.

Bangkok-based Kasikorn Research Center has forecast that the baht will fluctuate within the range of 31.8-32.2 baht per US dollar in the week from August 26 “unless there are major changes in the US’s monetary policy.”

According to the center, the range of Thai baht against the greenback will depend on several factors in the US, such as property sales, consumer, housing and income indexes, among other things, the official National News Bureau of Thailand said.

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