Thai Baht Weakens To Four-month Low

[george]

Thai baht weakens to four-month low

BANGKOK: -- The Thai baht last week hit a four-month low, slumping to Bt39.69 to the US dollar, as investors continued to express concern over the seemingly deteriorating security situation in the southern border region.

Describing the Thai currency's slide last week, the KASIKORN Research Centre (KRC) said in a report published yesterday that last weekend's bombings in the southern commercial city of Hat Yai were the primary factor behind investors' jitters.

The research centre also noted that the baht was facing additional pressure from the depreciation of a number of other regional currencies, including the Japanese yen.

At the same time, investors were worried about rising oil prices and a recent interview in which the US Federal Reserve indicated that interest rates were likely to rise.

The baht closed last week on Bt39.630 to the greenback, compared to Bt39.163 at the end of the previous week.

Next week the research centre predicts that the baht will move in a narrow band, fluctuating between Bt39.40 and Bt39.75 to the dollar, with trading on the stock exchange light due to the long vacation.

--TNA 2005-04-10