Thailand Central bank fails to halt baht drop

From www.bangkokpost.com:

The baht fell to a one-year low against the US dollar on Tuesday morning shortly after the prime minister declared a state of emergency, even though the Bank of Thailand intervened in the foreign exchange market.

BoT deputy governor on fiscal policy Ajana Waikwamdee said the central bank began inervening right after the declaration of a state of emergency.

She said the currency was "fluctuating", meaning falling.

At mid-morning, the currency hit 34.52 against the dollar. By early afternoon, it had sunk to 34.58 as the BoT continued to pour foreign reserves in to try to stop the market.

Mrs Ajana said she had not seen any "massive foreign capital outflow" and said it is not yet necessary to set up a capital reserve fund.

The bottom also fell out of the Stock Exchange of Thailand.

At the midday break, the SET Index had dropped 12.21 points to 663.01.


US Dollar against Thailand Baht daily chart since July 2008


Daily USD/THB chart as at 2 September 2008, 3.30pm using NextVIEW Advisor


Stock Exchange of Thailand Index daily chart


Daily SETI chart as at 2 September 2008, 3.35pm using NextVIEW Advisor


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