Baht declines as investors baulk at lack of fiscal disciplineA man visits a currency exchange booth last year. (File photo: Somchai Poomlard)The baht weakened to below 36 to the dollar on Monday as renewed concerns surfaced over Thailand’s fiscal discipline, following the government’s announcement on its digital wallet scheme on Friday, leading to outflows from Thai bond and stock markets, according to analysts. On Friday, foreign investors were net sellers of 3.75 billion baht in the Thai bond market, while they posted a net outflow of 2.39 billion baht from the Stock Exchange of Thailand, said K-Research. Poon Panichpibool, market strategist at Krungthai Bank (KTB), said concerns over Thailand’s fiscal stability and US interest rates are factors that could pressure the baht to weaken further, while foreign fund flows may fluctuate. KTB anticipates the baht could move in a range of 35.60-36.30 to the dollar this week, said Mr Poon.
