Korean tension and currency speculation affect baht
Tension in the Korean Peninsula has made the baht volatile, according to the Central Bank.
Mewanwhile, the Bank of Thailand is still waiting for information from banks about speculation on the baht currency, but no capital control is needed, said Mathee Supapongse, the BOT’s deputy governor on Tuesday.
He responded to growing concerns among exporters over the appreciation of the baht, which has risen 7.7 per cent against the US dollar this year.
When compared with other countries in the Asian region, the baht had risen only 2.6 per cent, he said at the Investment forum “Thailand Focus 2017”.
The BOT recently asked banks to report baht transactions deemed as solely speculative activity on exchange move.
The volatility of the South Korean won in light of renewed threats from North Korea has also affected the currency.
The latest act by North Korea – firing a missile over Japan – has added to market concerns and had an impact on the financial market and local economy.
