Baht weakens below 31 per dollar
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The Thai baht fell below 31 per US dollar for the first time in six weeks, under the pressure of lingering concerns in the euro-zone debt crisis as well as massive flood impacts.
The baht opened lower to 31.01-31.04 per dollar, from 30.98-31 on Friday. As of 5.30pm, the baht was 31.17, the lowest level since Oct 10.
"Dollar demand is brisk, as the euro crisis would not be solved in the near future," said a trader.
While the euro-zone crisis dampens all regional currencies, the Thai baht also weakens on worse-than-expected economic impacts from the flood disaster.
The National Economic and Social Development Board today expected the fourth-quarter economy to contract 3.7 per cent, starkly lower from the growth forecast of over 4 per cent. This will pull down the annualised growth forecast from 4.5 per cent to 1.5 per cent.
The economic think tank expected the flood damage to reach Bt200-Bt300 billion.
