Thai Baht Exchange Rate Today: Baht Dollar (THB USD) tumbles from three-week high

Modified: Friday, 17 January 2014 20:07 BST - Written by James Fuller

STORY LINK Thai Baht Exchange Rate Today: Baht Dollar (THB USD) tumbles from three-week high

The Thai Baht to US Dollar exchange rate has fallen from a three-week high as investors grow increasingly concerned over the political stability of the protest hit nation.

Fears were increased after a bomb exploded at an anti-government rally in Bangkok. The Baht had previously risen as protests died down in recent weeks but this act of violence which injured 28 people could be a spark that reignites the protest movement.

“There is no reason to buy the Baht or Thai assets whilst the protests continue. The longer the unrest lasts the more foreign investors will be reluctant to buy Thai assets,” said the chief trader at Japanese Bank.

The prime minister has called for restraint and so far security forces have sought to avoid clashes with protesters.

The Protestors want Prime Minister Yingluck Shinawatra to resign as they accuse her of being influenced by her disgraced brother the former PM Thaskin Shinawatra. To try and end the protests Ms Yingluck has called for elections due to be held on the 2nd of February. The opposition however have vowed to boycott the poll.

The currency came under more pressure yesterday after the Thai finance ministry lowered its 2014 economic growth forecast for the second time in a month. They now predict that the nations growth rate will be 3.1%, down from the previously reduced figure of 4% in December.

The anti-government protests have dragged on for over two months and shows no sign of ending.

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