BANGKOK, 30 Jan 2014 The Bank of Thailand (BoT) said that the Thai Baht currency would still fluctuate, citing both U.S. economic movements and local political situation as key driving forces.
Ms. Rung Mallikamas, Spokeswoman of the BoT, said that the baht would react in accordance with the U.S.’s Federal Reserve decision on the Quantitative Easing measure (QE). Speculation has been made recently that FED would reduce its QE from 75 billion dollars/month by 10 billion dollars.
The spokesperson expressed her concerns over the baht saying the currency has sometimes weakened faster than other currencies in the region. She attributed the baht fall to the political impasse, indicating the currency this month moved narrowly as the political situation remained unchanged. The BoT however decided to refrain from intervention, deeming that leaving the baht to the market mechanism would be the best approach to stabilize the currency.
