Thai baht instability rises due to political unrest

Political unrest is heightening baht oscillations against the US dollar, as Thailand finds itself without a stable government, the head of the Bank Thailand asserts.

This turbulence introduces a greater risk factor amongst investors who are observing the foreign exchange rate, particularly between the baht and the US dollar, in light of Thailand’s current political developments. Post Thailand’s General Election in May, political factions continue to bicker about the newly formed government.

Sethaput Suthiwartnarueput, the central bank governor, at a seminar hosted by its southern region office yesterday, stated…

“Given these underlying risks and vulnerabilities, the baht has witnessed irregular movements against the dollar.

“The main factor driving the recent baht volatility is the movement of the US federal funds rate (the monetary policy…