BANGKOK: The baht could remain under downward pressure as the central bank said the currency is not in line with economic fundamentals and there’s policy space left, according to Masakatsu Fukaya, an emerging-market currency trader at Mizuho Bank.
Wednesday’s rate cut indicates the Bank of Thailand welcomes the baht’s weakness, Tokyo-based Fukaya says in a phone interview.
Thailand’s economy is being hurt by the outbreak of coronavirus while facing other challenges, justifying the rate cut.
The baht drops 0.6% to 31.143 per dollar as of 11:04am in Bangkok; Fukaya expects the currency will weaken to around 31.5 by end-March. - Bloomberg
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