Baht slumps to near 4-year low on political tumult

The Thai baht slumped to its lowest level in almost four years against the dollar on Monday, hurt by deepening political turmoil after Thailand's main opposition party said it would boycott an election in February. -- FILE PHOTO: BLOOMBERG
The Thai baht slumped to its lowest level in almost four years against the dollar on Monday, hurt by deepening political turmoil after Thailand's main opposition party said it would boycott an election in February. -- FILE PHOTO: BLOOMBERG

SINGAPORE (Reuters) - The Thai baht slumped to its lowest level in almost four years against the dollar on Monday, hurt by deepening political turmoil after Thailand's main opposition party said it would boycott an election in February.

The Thai baht touched a low of 32.71 versus the dollar as of 9.48am Singapore time, the baht's weakest level since March 2010, according to Thomson Reuters data.

Growing worries about political risks helped knock the baht lower against the greenback, a Bangkok-based trader said.

Thailand's main opposition party announced on Saturday it would boycott an election in February, deepening uncertainty about the poll and fuelling a campaign to overthrow Prime Minister Yingluck Shinawatra's government.

The baht, like many other emerging Asian currencies, has also come under pressure after the US Federal Reserve announced last week that it would start reducing the pace of its monthly asset purchases starting in January.

On Monday, the rest of the Asian currencies were mixed. The Indonesian rupiah and the Malaysian ringgit sagged, while others such as the Singapore dollar and the South Korean won held steady.