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| Version 1 | Version 2 |
|---|---|
| Thailand martial law hits local currency and stocks | Thailand martial law hits local currency and stocks |
| (35 minutes later) | |
| Thailand's currency the baht and Thai shares fell on Tuesday after the army imposed martial law in an attempt to restore stability. The move follows months of political protests. | Thailand's currency the baht and Thai shares fell on Tuesday after the army imposed martial law in an attempt to restore stability. The move follows months of political protests. |
| The country's benchmark stock index the SET fell by nearly 1%. Over the past 12 months, the index has shed 12%. | The country's benchmark stock index the SET fell by nearly 1%. Over the past 12 months, the index has shed 12%. |
| Meanwhile the currency fell by as much as 0.6% to 32.52 Thai baht against the US dollar earlier in the day. | Meanwhile the currency fell by as much as 0.6% to 32.52 Thai baht against the US dollar earlier in the day. |
| It later pared those losses, after suspected official intervention. | It later pared those losses, after suspected official intervention. |
| Traders in the region said they believed Thailand's central bank had stepped in to stem a further fall in the value of the baht. | |
| Positive spin? | Positive spin? |
| The Thai baht is likely to "continue to underperform its peers in Asia unless further clarity emerges," said Vipul Agarwal, who works in global foreign exchange at Nomura. | The Thai baht is likely to "continue to underperform its peers in Asia unless further clarity emerges," said Vipul Agarwal, who works in global foreign exchange at Nomura. |
| Mr Agarwal also noted - "It's too early to tell how events will unfold over the next few weeks but the fact that the army has specifically stated that this is not a coup gives it a bit of a positive spin. | Mr Agarwal also noted - "It's too early to tell how events will unfold over the next few weeks but the fact that the army has specifically stated that this is not a coup gives it a bit of a positive spin. |
| Foreign investors are clearly nervous about the developments in Bangkok and are hoping that this is a planned first step which could lead us out of the political mess by moving towards setting up a functional government and declaring an election schedule." | Foreign investors are clearly nervous about the developments in Bangkok and are hoping that this is a planned first step which could lead us out of the political mess by moving towards setting up a functional government and declaring an election schedule." |
| The martial law comes one day after Thailand reported a 2.1% contraction in the economy in the first quarter of the year, when compared with the previous quarter. | The martial law comes one day after Thailand reported a 2.1% contraction in the economy in the first quarter of the year, when compared with the previous quarter. |
| 'Not a coup' | 'Not a coup' |
| The Thai army says that it is imposing martial law amid a political crisis "to preserve law and order". | The Thai army says that it is imposing martial law amid a political crisis "to preserve law and order". |
| The surprise announcement also granted the army wide-ranging powers to enforce its decision. | The surprise announcement also granted the army wide-ranging powers to enforce its decision. |
| The military insisted that its assumption of responsibility for national security was not a coup. | The military insisted that its assumption of responsibility for national security was not a coup. |
| Martial law comes after a long-running political crisis, and months of escalating tensions between the government and the opposition. | Martial law comes after a long-running political crisis, and months of escalating tensions between the government and the opposition. |
| The chief security advisor to the interim prime minister said the government had not been consulted about the army's decision. | The chief security advisor to the interim prime minister said the government had not been consulted about the army's decision. |
| Ratings watch | Ratings watch |
| Fitch Ratings said the imposition of martial law is "not, in itself, negative for Thailand's ratings, although clearly we are keeping the situation under close review." | Fitch Ratings said the imposition of martial law is "not, in itself, negative for Thailand's ratings, although clearly we are keeping the situation under close review." |
| The ratings agency currently has a BBB+ credit rating for Thailand with a 'stable' outlook. | The ratings agency currently has a BBB+ credit rating for Thailand with a 'stable' outlook. |
| Andrew Colquhoun, Head of Asia Pacific Sovereigns at Fitch Ratings added: "The key factors for the ratings are whether Thailand can avert more serious and bloody political disorder, and whether we see a return to a fully functioning government that is able to make policy and pass a budget for the next fiscal year starting in October. | Andrew Colquhoun, Head of Asia Pacific Sovereigns at Fitch Ratings added: "The key factors for the ratings are whether Thailand can avert more serious and bloody political disorder, and whether we see a return to a fully functioning government that is able to make policy and pass a budget for the next fiscal year starting in October. |
| The return of a functioning government and a lowering of the political temperature would help to restore confidence more broadly and pull the economy out of its tailspin." | The return of a functioning government and a lowering of the political temperature would help to restore confidence more broadly and pull the economy out of its tailspin." |