Baht Falls as Floods Overwhelm Thailand’s Capital
The Thai baht fell today on the outlook for slower economic growth and interest rate cut caused by the floods in Thailand’s capital.
Assistant Governor Paiboon Kittisrikangwan said:
The impact of the floods is severe and widespread, from the agricultural to the industrial sectors, and economic activities including exports, consumption and private investment are expected to slow. If the economy slows, there is a possibility that the central bank may ease monetary policy, but it has to take inflationary pressures into account.
The Bank of Thailand cut its economic growth forecast to 2.6 percent this year from the previous estimate 4.1 percent and added that the forecast may lowered again next month.
USD/THB advanced from 30.4850 to 30.5300 today as of 13:45 GMT, while the daily maximum was 30.6300.
If you have any questions, comments or opinions regarding the Thai Baht, feel free to post them using the commentary form below.
Earlier News About the Thai Baht:
- Thai Baht Advances on Overseas Inflows (2011-07-08)
- Thai Baht Weak Ahead of Elections (2011-06-24)
- Thai Baht Gains as Economy Grows (2011-02-21)
- Thai Baht Demonstrates Best Performance Since February 2008 (2010-08-31)
- Thai Baht Gains on Capital Inflows & Central Bank's Statement (2010-08-20)