The baht posted its biggest three-day loss in more than six weeks on concern escalating political tensions will hurt growth at a time when investors are trimming holdings of emerging-market assets.
Overseas investors have sold US$948 million (30.8 billion baht) more Thai stocks than they bought this year and $124 million in bonds, exchange data show, as the Federal Reserve started paring stimulus that had driven capital into developing markets.
''The deteriorating political situation in Thailand is hurting the baht at a time when general sentiment for emerging-market currencies is weak,'' said Tsutomu Soma, manager of the fixed-income business unit at Rakuten Securities Inc in Tokyo. ''Technically, it was time for the baht to see a downward correction from a rally earlier this month.''
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