The Thai baht dropped today as the central bank performed an interest rate cut and the Constitutional Court ruled out the investment bill, which should have improved the economic climate in the country.
Judges decided that the legislation, which should have allocated 2 trillion baht ($62 billion) to government infrastructure projects, is unconstitutional. Meanwhile, the Bank of Thailand reduced the policy rate by 25 basis points to 2 percent. The bank explained:
The committee judges that downside risks to growth have risen in the wake of prolonged political situation.
USD/THB advanced from 32.3650 to 32.4050 as of 15:45 GMT today.
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