Latest news with #PitiDisyatat
Bangkok Post
a day ago
- Business
- Bangkok Post
Bank of Thailand vows to step in if baht moves are unhinged
Thailand's central bank is ready to tackle excessive baht volatility by managing any moves 'unhinged' from its fundamentals, a deputy governor said, amid calls from local businesses to temper the currency's rally to help exports and tourism. 'We do look at the baht closely and try not to let it be too volatile,' Piti Disyatat said in an interview late on Thursday. 'If it's driven by non-fundamental reasons, portfolio perceptions, sentiment that's unhinged with macro fundamentals then we will reduce the volatility.' The baht has surged about 5% this year, prompting some ministers and business groups to call for the central bank to weaken the currency to boost exports and tourism — the nation's biggest drivers of growth. The baht fell 0.3% to 32.57 per dollar on Friday, underperforming Asian peers. Mr Piti's comments also come at a time when the nation is in trade talks with the US to lower a 36% tariff rate on its goods. President Donald Trump has long accused Asian countries for maintaining undervalued exchange rates that helped them amass trade surpluses with the US. The Bank of Thailand (BoT) doesn't target any particular level or direction for the baht and its gain this year is in line with regional peers, Mr Piti said. The currency is little changed on a trade-weighted exchange-rate basis and hasn't hurt the country's export competitiveness, he said. Thailand's exchange rate policy complies with the International Monetary Fund code when it comes to managing volatility so it shouldn't become an issue, Mr Piti said, when asked if tariff talks with the Trump administration included exchange rate. While foreign-exchange intervention was one instrument at the central bank's disposal to maintain stability, the BoT mostly allows the flexible exchange regime to absorb shocks, Mr Piti said, adding 'we manage it only when we really have to'. The baht's move in tandem with gold prices is not deemed as a fundamental reason, though it amplifies the currency's movements, he said. A jump in Thailand's foreign reserves to a record $259.9 billion this month reflects valuation adjustments in its asset holdings, rather than the central bank mopping up additional dollars, Mr Piti said.
Business Times
a day ago
- Business
- Business Times
Thailand central bank vows to step in if baht moves are unhinged
[BANGKOK] Thailand's central bank is ready to tackle excessive baht volatility by managing any moves 'unhinged' from its fundamentals, a deputy governor said, amid calls from local businesses to temper the currency's rally to help exports and tourism. 'We do look at the baht closely and try not to let it be too volatile,' Piti Disyatat said in an interview late on Thursday (Jun 26). 'If it's driven by non-fundamental reasons, portfolio perceptions, sentiment that's unhinged with macro fundamentals then we will reduce the volatility.' The Thai baht has surged about 5 per cent this year, prompting some ministers and business groups to call for the central bank to weaken the currency to boost exports and tourism – the nation's biggest drivers of growth. Piti's comments also come at a time when the nation is in trade talks with the US to lower a 36 per cent tariff rate on its goods. President Donald Trump has long accused Asian countries for maintaining undervalued exchange rates that helped them amass trade surpluses with the US. The Bank of Thailand doesn't target any particular level or direction for the baht and its gain this year is in line with regional peers, Pita said. The currency is little changed on a trade-weighted exchange-rate basis and hasn't hurt the country's export competitiveness, he said. Thailand's exchange rate policy complies with the International Monetary Fund code when it comes to managing volatility so it shouldn't become an issue, Piti said, when asked if tariff talks with the Trump administration included exchange rate. While foreign-exchange intervention was one instrument at the central bank's disposal to maintain stability, BOT mostly allows the flexible exchange regime to absorb shocks, Piti said, adding 'we manage it only when we really have to.' The baht's move in tandem with gold prices is not deemed as a fundamental reason, though it amplifies the currency's movements, he said. A jump in Thailand's foreign reserves to a record US$259.9 billion this month reflects valuation adjustments in its asset holdings, rather than the central bank mopping up additional dollars, Piti said. BLOOMBERG
Bloomberg
a day ago
- Business
- Bloomberg
Thailand Central Bank Vows to Step In If Baht Moves Are Unhinged
Thailand's central bank is ready to tackle excessive baht volatility by managing any moves 'unhinged' from its fundamentals, a deputy governor said, amid calls from local businesses to temper the currency's rally to help exports and tourism. 'We do look at the baht closely and try not to let it be too volatile,' Piti Disyatat said in an interview late on Thursday. 'If it's driven by non-fundamental reasons, portfolio perceptions, sentiment that's unhinged with macro fundamentals then we will reduce the volatility.'
Bloomberg
a day ago
- Business
- Bloomberg
Thai Rate Pause Is Lifeline Saved for Turbulence Ahead, BOT Says
The Bank of Thailand 's decision to leave borrowing costs unchanged this week gives it a 'monetary lifeline' to deal with challenges ranging from US tariffs and geopolitical tensions to domestic politics, according to Deputy Governor Piti Disyatat. The central bank sees 'limited room' available for easing its key rate, which at 1.75% is deemed as slightly accommodative and below the neutral level, Piti said in an interview in Bangkok. With the full impact of the US tariff on global trade and the Thai economy to be felt from the second half of this year, policymakers see it as important to preserve some firepower, he said.
Business Recorder
07-05-2025
- Business
- Business Recorder
Most Asian currencies weaker
BENGALURU: Most Asian currencies weakened on Tuesday with Taiwan's dollar retreating from three-year highs after six straight days of gains, with markets speculating that Taipei might permit currency strengthening to gain leverage in US trade talks. The Taiwan dollar reversed early gains to trade 0.3% lower at 30.24 per dollar as of 0638 GMT. On Monday, the currency saw its largest single-day percentage gain since the 1980s, closing at 30.145, its strongest finish in over two years. 'The central bank has probably stepped in,' a Taiwan forex trader said, noting Tuesday morning's move. Taiwan's central bank dismissed rumours of US pressure for a stronger currency, attributing recent volatility to foreign inflows and market expectations. The moves occurred alongside US-Taiwan trade talks in Washington. The scale of the rally suggests a big unwinding as exporters and insurers reconsider long-held dollar positions built during years of trade surpluses. Thailand's baht strengthened 0.4% after inflation turned negative for the first time in more than a year in April. The central bank cut rates last week and Deputy Governor Piti Disyatat told Reuters they were ready to ease further if needed. The next policy meeting is on June 25. 'THB could face the same fate as TWD but impacts could be less severe as investors likely reduced unhedged offshore investments,' said Poon Panichpibool, Krung Thai Bank strategist. Philippine inflation also cooled, hitting a five-year low in April. The country releases first-quarter growth figures on Thursday, ahead of the June 19 policy meeting. The Malaysian ringgit fell as much as 1% to 4.238 per dollar. Malaysia's central bank is expected to maintain rates on Thursday with the trade minister stating that trade tensions would impact Malaysian exports more significantly than currency fluctuations. The Indonesian rupiah and the Singaporean dollar each slipped 0.2%. The dollar index held at 99.82 following a 0.7% two-day decline and a 4.3% drop in April as concerns mounted over Trump's tariff policies. The Federal Reserve announces its policy decision on Wednesday, likely holding rates steady. The MSCI emerging market currencies index advanced 1.75% in April and is poised for its fifth consecutive monthly gain in May. Dollar weakness is triggering behavior changes among Asian investors trying to hedge downside risk, said Carlos Casanova, senior Asia economist at UBP. Regional equities were mixed, with Malaysia and Thailand down 0.3% and 0.2%, while Jakarta and the Philippines rose 1.1% and 0.9%, respectively.
