Biggest 1-day fall in 3 years for baht
PETALING JAYA: South-East Asian currencies, other than the baht, largely recovered or were unaffected by the Thai military coup that took place yesterday.
The ringgit ended almost unchanged against the US dollar as the local currency slowly retraced after a sharp “gap-up” weakening in early morning in reaction to the previous night’s dollar-baht movement, dealers said.
In reaction to the coup, the baht - which can be traded round the clock in Singapore - experienced its largest one-day fall in three years yesterday, as tanks rolled on the streets in Bangkok.
The baht experienced a drop of 1.2% against the dollar yesterday.
During the day the baht initially recouped some of the losses incurred in overnight trading but had weakened back to 37.7 against the dollar at 5pm yesterday, not much changed from 37.77 at 5am.
At 5pm, other South-East Asian currencies remained relatively unchanged, with the rupiah marginally lower and the peso higher than the previous day.
The peso was at 50.16 to the greenback against Tuesday’s closing of 50.36.
The rupiah was 9,168 to the dollar against Tuesday’s 9,160.
The ringgit closed at 3.6780/6830 to the greenback from 3.6800/6830 on Tuesday.
Meanwhile, the Singapore dollar rebounded from its overnight weakness in muted response to the coup.
At 5pm, the Singapore dollar was trading at 1.5862 to the US dollar, up from yesterday’s close of 1.5920.
Although the baht had experienced a sell-down, a local foreign exchange dealer pointed out that trading volumes were very thin as the Thai stock market was closed.
“The market is waiting for Bangkok (stock market) to open to gauge the internal reaction,” he said.
A head of research contacted agreed, saying that anything affecting a neighbouring country could potentially affect other countries in the region.
Fund managers would likely be re-looking at their portfolios in the region with the market remaining cautious of the situation in Thailand.
RAM Consultancy Services Sdn Bhd managing director and chief economist Dr Yeah Kim Leng said the contagion effect of a weakening of the baht was likely to be limited with the sharp appreciation in the renminbi having more impact on Asian currencies.
“Although there is a counter-balance effect, the spillover (from Thailand) would be limited at this point,” he said.
The ringgit ended almost unchanged against the US dollar as the local currency slowly retraced after a sharp “gap-up” weakening in early morning in reaction to the previous night’s dollar-baht movement, dealers said.
In reaction to the coup, the baht - which can be traded round the clock in Singapore - experienced its largest one-day fall in three years yesterday, as tanks rolled on the streets in Bangkok.
The baht experienced a drop of 1.2% against the dollar yesterday.
During the day the baht initially recouped some of the losses incurred in overnight trading but had weakened back to 37.7 against the dollar at 5pm yesterday, not much changed from 37.77 at 5am.
At 5pm, other South-East Asian currencies remained relatively unchanged, with the rupiah marginally lower and the peso higher than the previous day.
The peso was at 50.16 to the greenback against Tuesday’s closing of 50.36.
The rupiah was 9,168 to the dollar against Tuesday’s 9,160.
The ringgit closed at 3.6780/6830 to the greenback from 3.6800/6830 on Tuesday.
Meanwhile, the Singapore dollar rebounded from its overnight weakness in muted response to the coup.
At 5pm, the Singapore dollar was trading at 1.5862 to the US dollar, up from yesterday’s close of 1.5920.
Although the baht had experienced a sell-down, a local foreign exchange dealer pointed out that trading volumes were very thin as the Thai stock market was closed.
“The market is waiting for Bangkok (stock market) to open to gauge the internal reaction,” he said.
A head of research contacted agreed, saying that anything affecting a neighbouring country could potentially affect other countries in the region.
Fund managers would likely be re-looking at their portfolios in the region with the market remaining cautious of the situation in Thailand.
RAM Consultancy Services Sdn Bhd managing director and chief economist Dr Yeah Kim Leng said the contagion effect of a weakening of the baht was likely to be limited with the sharp appreciation in the renminbi having more impact on Asian currencies.
“Although there is a counter-balance effect, the spillover (from Thailand) would be limited at this point,” he said.
posted by SEE FU at 4:32 PM
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