The Bank of Thailand is selling dollars on the currency market to try to prevent the baht falling below the 33.50-per-dollar level, traders said on Wednesday.

“I think they are trying to cap the dollar/baht at 33.50,” said a trader in Bangkok.

A second trader said most market players were seeking to buy dollars while the central bank was “protecting the 33.50 level aggressively”.

The baht steadied near 33.48 per dollar, after briefly falling to 33.52, due partly to the official intervention, traders said.

The baht was weighed by concerns about domestic political uncertainty and news that Thailand’s cabinet had appointed a new Bank of Thailand board, traders said.

Bank of Thailand has in recent months frequently intervened to support the struggling baht, which has lost about 7.3 percent since March 19 due to jitters about the global credit woes and domestic political uncertainty.

Source: http://www.afxnews.com

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