Article by ForexTime
The Thai baht slid to a six-year low early on Tuesday after a bomb blast in Bangkok, Thailand. There are concerns the incident will hurt the country’s tourism industry ( a large part of the Thai economy.) Tourism accounts for about 10 percent of Thailand’s economy.
On Monday, a bomb that was planted at one of Bangkok’s most renowned shrines, killed 22 people, including eight foreign tourists, and wounded many more.
The Thai baht fell as much as 0.5 percent to 35.571 per dollar, its weakest in six years, since April 2009. Demand for the currency dissipated after the news of the bomb blast, as foreign and local banks sold it off. We could see the Thai baht staying weak as uncertainty lingers for the time being. The baht could weaken to even 35.750 in the short term as the currency is already under pressure from prospects of the Fed’s interest rate hike soon.
Stock markets were also affected and Bangkok shares tumbled by almost 3 percent, which will spur more stock outflows, which will further hurt the baht.
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