Thai central bank ready to manage 'volatile' baht
Reuters
Published Sep 16, 2022 05:33AM ET
Updated Sep 16, 2022 06:36AM ET
(Reuters) - Thailand's central bank on Friday said it was closely monitoring the baht and was ready to manage any excessive moves in the currency which hit its weakest level in nearly 16 years.
The baht, one the of region's worst-performing currencies, hit a level of 37 baht to the U.S. dollar on Friday, the weakest since December 2006. It has weakened about 10% against the greenback so far this year.
The baht is more volatile due mainly to external factors, including expectations of more aggressive U.S interest rises and deteriorating risk sentiment in emerging Asian markets after China's yuan had fallen below 7 per dollar, the Bank of Thailand (BOT) said in a text message to reporters.
There was also a specific factor for Thailand due to falling gold prices, resulting in more dollar buying by gold companies, Assistant Governor Alisara Mahasandana said in the statement.
"The BOT is closely monitoring the movement of the baht and is ready to take action when the baht moves in an unusually volatile way in order not to affect the adjustment of the real economy," she said.
The currency tended to become more volatile, particularly when it depreciated past the 37 baht to the dollar level, she noted.
The BOT also urged businesses to manage risks to mitigate the effects of high financial market volatility, she added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.