The Bank of Thailand said on Tuesday it was closely monitoring the Thai baht and is ready to take action if moves in the currency are unusually volatile.
The depreciation of the baht has been mainly driven by external factors, the BoT said in a statement. The baht was at 34.22 per dollar at Tuesday’s close, the weakest level in almost five years.
The US Federal Reserve’s tendency toward tighter-than-expected monetary policy has continued to push up the dollar, causing regional currencies, including the baht, to fall, the BoT said.
Advertisement
Since the start of the year, the baht has depreciated 2.5% against the dollar, while regional currencies have fallen between 1% to 5.5%, according to the BoT.
Concerns about China’s slowdown following persistent lockdowns have also weighed on regional currencies, while the baht faced additional short-term pressure from dividend repatriation of foreign investors, it said.
The private sector should regularly manage risks to reduce the impact of financial market volatility at a time of high uncertainty, the central bank said.
Advertisement
