BANGKOK — The Thai baht was the worst performer among commonly traded Southeast Asian currencies during the first quarter, as its fundamentals were eroded due to lack of tourist spending.
The baht depreciated 4% against the U.S. dollar to 31.24, according to Refinitiv data. The fall stood out from regional peers, which also were in decline.
On Wednesday, the baht reached the cheapest level in roughly half a year.
The kingdom’s weakening fundamentals led to the drop. Thailand’s current account turned to a deficit of $1.4 billion in the fourth quarter of 2020 from a surplus of $6.6 billion in the third quarter and $11.5 billion in the same period in the previous year. It was the first time Southeast Asia’s second largest economy has recorded a deficit since the third quarter of 2014, according to the Bank of Thailand. Read more…..
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