Thai baht falls as investor faith suffers
The Thai baht suffered its biggest one-day fall in more than three years during currency trading on Thursday as the fall-out from the government's fiscal rule change rumbled on.
The currency fell 1.6 per cent to 36.68 against the dollar and traded at
48.026 on the euro and at 71.585 on the pound.
It has fallen nearly four per cent since Monday, when the government imposed penalties on overseas transactions in an attempt to halt a flood of hot money in the economy.
The measures were partially reversed after the national bourse plunged
16 per cent in the wake of the announcement, but controls remain on currency exchanges.
"We're hearing a lot of hedge funds are exiting Thailand," Chee Chen Poh, a currency trader at BNP Paribas, told Bloomberg.
"There's been a lot of blood spilled in the market as the mood isn't good for Thailand. There's a big drop in the baht and stocks are still going down."
The rules introduced an effective ten per cent tax on investments of $20,000 or more that are removed from the country within 12 months of the original transaction.