S'pore helps save Thailand's baht

S'pore helps save Thailand's baht

BANGKOK (AFP): The central Bank of Thailand said yesterday
that it had jointly intervened with the Monetary Authority of
Singapore to save the baht from speculative attack.

"Today the Bank of Thailand and the Monetary of Singapore
jointly intervened in the foreign exchange market to stabilize
the value of the Thai baht," the central bank said in a
statement.

It said the operation was aimed at "stemming excessive
speculative activities which may lead to disorderly conditions in
the Thai and regional financial markets."

Despite the intervention, the U.S. dollar rose to 26.07 baht
as of 0745 GMT from 25.90 on Tuesday.

Meanwhile, the Stock Exchange of Thailand index was down 5.6
percent at 566.34 points at 3:20 p.m. (0830 GMT).

The Bank of Thailand statement said without elaborating that
"other appropriate measures will be taken as necessary."

Dealers from European and American finance houses in Singapore
said that the Malaysian, Thai, Singapore and Hong Kong central
banks were in the market to buy the Thai currency against the
greenback.

Bank of Thailand assistant deputy governor Siri Garncharoendee
told AFX-Asia, an AFP-affiliated financial news wire, that the
Thai central bank intervened in the foreign exchange markets, but
could give no figures.

"It is normal central bank procedure to support and stabilize
the currency when required," Siri said.

"The rumors of a baht devaluation appear to have sprung from
the rumors of a possible change in the government economic team,"
he said.

Thai Prime Minister Chaowalit Yongchaiyudh sparked a 2.4-
percent slide on the SET Monday after announcing last weekend
that he would take over control of the Thai economy from Finance
Minister Amnuay Virawan.

He later backtracked on the pledge, but analysts said his
comments dented already battered confidence in the Thai economy.

A Banque Indosuez currency dealer in Bangkok said the baht was
under attack on continuing rumors of a devaluation or an
adjustment in the trading band, with the slide in the stockmarket
adding to the negative sentiment.

"After a respite yesterday amid bearish action on major
currencies, selling for dollars intensified today on the weaker
SET and the expectation that the index will fall further," he
said.

Thailand's baht troubles are one of a string of problems
facing the economy after years of rapid growth.

Confidence in the Thai economy has been hit over the past two
years by slowing export growth, a massive current account deficit
and slumps on the stock and property markets.