Businesses warned to prepare for baht volatility

BANGKOK: -- Businesses should prepare for the possibility of further fluctuations in the value of the Thai currency, a leading economic think tank warned today.

According to the KASIKORN Research Centre (KRC), the baht could take a further slide over the coming months, after falling to 41.358 points yesterday, the lowest value in eight and a half months.

Pressurized on one side by the appreciation of the US dollar, the baht is also facing an onslaught from Thailand’s lower than expected economic growth figures, including the current account deficit, poor stock market performance, soaring oil prices and the continuing insurgency in the country's southern border region.

Although the KRC predicts that the baht could well pick up in the final quarter of the year, as the current account balance improves and exports and tourism pick up, it also warns that this currency revival will come amid bad news and continuing uncertainty.

Further pressure on the baht is likely to come if the tourism sector fails to pick up, and if investors remain concerned over the political situation and water shortages.

Warning businesses to prepare for further volatility, the research centre predicts that the currency is likely to fluctuate over the next few months.

--TNA 2005-06-30

Businesses warned to prepare for baht volatility

Pressurized on one side by the appreciation of the US dollar, the baht is also facing an onslaught from Thailand’s lower than expected economic growth figures, including the current account deficit, poor stock market performance, soaring oil prices and the continuing insurgency in the country's southern border region.

--TNA 2005-06-30

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and because of many other reasons and etc.. etc...

June 23rd, BOT – “At present, he (M.R. Pridiyathom Deakula) said, the baht had begun to stabilize to such an extent that the central needed not intervene.

June 30th, KCR - “the research center predicts that the currency is likely to fluctuate over the next few months”

Well at list one of them is bound to be correct.

fluctuation indicates up and down - I would more believe its just going down