Baht Posts Biggest Weekly Drop in 2011

The Thai baht dropped today, posting the biggest weekly loss this year. Foreign investors reduced holdings of the nation’s shared on fears that the crisis in Europe would slow global economic growth.
Nalin Chutchotitham, an analyst at Kasikornbank, explained the situation:

Investors are risk-averse and stock markets and Asian currencies can still test the weaker side. Importers may be buying the dollar as well because month-end demand is usually high and also because they are worried that the dollar may rise further.

The SET Index of shares lost 2.1 percent this week, showing the third weekly fall. Thailand’s exports unexpectedly slid 3.67 percent in April from a year ago, posting the fifth decrease in six months. The median forecast was a 6.4 percent advance.
USD/THB was up 0.3 percent to 31.69 today and reached 31.73 earlier, the highest price since January 19. The currency has climbed 1.1 percent this week.

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