Thai and Dollar Currency [Baht falls on dollar buying speculation]

28/06/2012 at 01:52 AM by

The baht fell towards a three-week low on speculation that US-dollar demand from importers will exceed local-currency purchases by exporters. Government bonds were little changed. The nation suffered a trade deficit of US$1.7 billion last month as an 18% increase in inbound shipments outstripped export growth of 7.68%, government data showed this week. The deficit in the trade balance may continue for a while as imports of machinery related to last year's floods have been climbing, said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc in Tokyo. The baht tends to see downward pressure from this aspect.
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