Protests in Thailand were weighing on the baht as foreign investors were pulling out capital, concerned by the political unrest. Concerns about potential monetary tightening from the US Federal Reserve made the currency even weaker against the US dollar.
Thai politicians were discussing an amnesty to those convicts who were imprisoned for political offenses and this led to demonstrations against the planned amnesty bill. There are concerns that the protest will hurt the economy and Bank of Thailand Governor Prasarn Trairatvorakul noted that the tourism sector and investor confidence were already affected. Not surprisingly, the baht lost much of its appeal because of the political turmoil.
USD/THB rose from 31.4750 to 31.6400 as of 15:18 GMT today, reaching the high of 31.7200 intraday.
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