Thai baht at 7-month low

The Thai baht (THB) weakened to a seven-month low on June 28 as political uncertainty dampened investor appetite, while most other emerging Asian currencies also depreciated against a firmer dollar after resilient US data eased recession concerns.

Thai baht at 7-month low (Photo: VNA)

Equities in the region were largely in the red, with shares in the Republic of Korea (RoK) taking the biggest hit, declining 0.8%, while those in the Philippines and China lost 0.3% and 0.5%, respectively.

The THB depreciated 0.6% to hit its lowest level since Nov 30, 2022, as doubts linger over whether Thailand's leading candidate could secure enough votes to become prime minister in the new parliament's first session next week.

Alvin Tan, head of Asia FX strategy at RBC Capital Markets, said it is unlikely that the (Move Forward) coalition has the necessary votes to go ahead to form a new government. The political stalemate and uncertainty in Thailand will drag on if the country does not get a new government by next week, Tan added.

Elsewhere, the RoK won fell 0.3%, while the Philippines peso and Singapore dollar slipped 0.2% and 0.1%, respectively./.

VNA