The Bank of Thailand says it is confident about the baht's stability despite recent depreciation against the US dollar amid heightened external uncertainties.Given the baht's resilience and Thailand's strong external fundamentals, the central bank's Monetary Policy Committee (MPC) sees no need to convene a special meeting, unlike its counterpart in Indonesia, said Chayawadee Chai-anant, assistant governor for corporate relations and spokesperson for the regulator.
Since the onset of the Middle East conflict, the baht has weakened by 5.4% against the dollar. However, foreign investors have recorded net sales of Thai assets totalling only US$1.3 billion.
Foreign funds have begun returning to Thailand's long-term bond and equities markets, reflecting an improvement in investor sentiment, Ms Chayawadee said on Wednesday.
The prolonged conflict in the Middle East has raised concerns about energy security worldwide, including in Southeast Asia. Governments across the region have adopted various measures to manage the oil shock and support their economies. However, some of these measures have affected asset prices, foreign exchange markets and interest rates.
On Tuesday, Bank Indonesia held a special meeting and decided to raise its policy rate to ease pressure from the rapid depreciation of the rupiah against the dollar. Since the war against Iran started, the rupiah has weakened by more than 8%, one of its sharpest declines on record.
