Thai baht continued to weaken against the US dollar, breaking the support level of THB38.00 to its lowest since 2006 amid strong dollar and US bond yields on the back of Fed’s commitment to tame inflation by hiking interest rates and other tools available.
The market expected the Bank of Thailand to increase its borrowing rate by 25 basis points, but some economists believed that a small hike of 25 basis points would do little to no help cushioning Thai baht.
Meanwhile, China’s yuan hits 14-year low against dollars, despite new central bank steps to defend its currency from dollars.
In the early trading session on Wednesday of Asian trading hours, Korean won plunged the most at -1.04%. Despite the intervention of the Japanese government, yen is still the weakest currency this year at -20.46%.
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