S'pore helps save Thailand's baht<\/p>\n
BANGKOK (AFP): The central Bank of Thailand said yesterday
\nthat it had jointly intervened with the Monetary Authority of
\nSingapore to save the baht from speculative attack.<\/p>\n
\"Today the Bank of Thailand and the Monetary of Singapore
\njointly intervened in the foreign exchange market to stabilize
\nthe value of the Thai baht,\" the central bank said in a
\nstatement.<\/p>\n
It said the operation was aimed at \"stemming excessive
\nspeculative activities which may lead to disorderly conditions in
\nthe Thai and regional financial markets.\"<\/p>\n
Despite the intervention, the U.S. dollar rose to 26.07 baht
\nas of 0745 GMT from 25.90 on Tuesday.<\/p>\n
Meanwhile, the Stock Exchange of Thailand index was down 5.6
\npercent at 566.34 points at 3:20 p.m. (0830 GMT).<\/p>\n
The Bank of Thailand statement said without elaborating that
\n\"other appropriate measures will be taken as necessary.\"<\/p>\n
Dealers from European and American finance houses in Singapore
\nsaid that the Malaysian, Thai, Singapore and Hong Kong central
\nbanks were in the market to buy the Thai currency against the
\ngreenback.<\/p>\n
Bank of Thailand assistant deputy governor Siri Garncharoendee
\ntold AFX-Asia, an AFP-affiliated financial news wire, that the
\nThai central bank intervened in the foreign exchange markets, but
\ncould give no figures.<\/p>\n
\"It is normal central bank procedure to support and stabilize
\nthe currency when required,\" Siri said.<\/p>\n
\"The rumors of a baht devaluation appear to have sprung from
\nthe rumors of a possible change in the government economic team,\"
\nhe said.<\/p>\n
Thai Prime Minister Chaowalit Yongchaiyudh sparked a 2.4-
\npercent slide on the SET Monday after announcing last weekend
\nthat he would take over control of the Thai economy from Finance
\nMinister Amnuay Virawan.<\/p>\n
He later backtracked on the pledge, but analysts said his
\ncomments dented already battered confidence in the Thai economy.<\/p>\n
A Banque Indosuez currency dealer in Bangkok said the baht was
\nunder attack on continuing rumors of a devaluation or an
\nadjustment in the trading band, with the slide in the stockmarket
\nadding to the negative sentiment.<\/p>\n
\"After a respite yesterday amid bearish action on major
\ncurrencies, selling for dollars intensified today on the weaker
\nSET and the expectation that the index will fall further,\" he
\nsaid.<\/p>\n
Thailand's baht troubles are one of a string of problems
\nfacing the economy after years of rapid growth.<\/p>\n
Confidence in the Thai economy has been hit over the past two
\nyears by slowing export growth, a massive current account deficit
\nand slumps on the stock and property markets.<\/p>",
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