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[TheYenta]

"The baht yesterday fell yesterday to its weakest level in nine months at 34.12/15 to a dollar as it suffered from investors' lack of confidence in monetary policy and political stability, analysts said.

The baht has weakened since the beginning of 2008, with the strongest level so far this year at 31.27 to a dollar in mid-March. Its decline is in part due to capital outflows as foreign investors sell Thai stocks, causing the Stock Exchange of Thailand index to fall more than 19% in the past three months.

Simon Flint, the Singapore-based head of Asian foreign exchange for Lehman Brothers, said the depreciation reflected a perception that the Bank of Thailand's benchmark short-term interest rate was too low to curb inflation.

The baht's persistent slide has surprised markets, which had expected the currency to appreciate after the Election Commission postponed a decision on whether to dissolve the governing People Power Party to Sept 2."

http://www.nationmultimedia.com/2008/08/21...es_30081090.php