Thai Baht Weakens on Prospects for Intervention

The Thai baht went down today on speculations that policy makers will intervene to curb currency’s gains that may threaten the nation’s economy.
Finance Minister Kittiratt Na-Ranong complained that the high exchange rate was partly responsible for the 5.8 percent drop of exports in February. Such comments led to speculations about a potential intervention. The currency was performing well indeed, rallying 4.1 percent since the beginning of the year. The bank touched the strongest level in 16 years in March.
USD/THB rose from 29.3300 to 29.3750 as of 16:09 GMT today and its daily high was at 29.4350.

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