- Thailand Baht has taken a hit reportedly due to central bank intervention.
- Baht has registered its biggest decline since 2007.
Thai Baht (THB) has dropped by more than 1%, pushing USD/THB pair higher to 30.106 reportedly due to central bank intervention.
The currency pair traded at 30.226 in Asia. At that level, THB was down close to 1.8% - the biggest decline since 2007.
“It’s likely to be central bank intervention given that the central bank has mentioned that they’ll be fighting against baht strength,” said Mingze Wu, a foreign-exchange trader at INTL FCStone in Singapore, according to Bloomberg.
The Baht had surged to a six-year high of 29.718 earlier this week. The surge was associated with low liquidity and market imbalance by Thailand's central bank.
The currency gained almost 9% in 2019 on haven demand. Markets treat THB as an anti-risk currency as it is backed by current account surplus.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.