Thailand start currency war in ZO-Azië

Thailand’s central bank voted unanimously to cut its 2.75% base rate by a quarter of a percentage point on Wednesday in an attempt to stem a sharp rise in the baht. While its economic situation is unique, Thailand is joining other Asian countries in setting a currency-devaluing precedent that may leave other emerging economies with little choice but to follow suit.

Quantitative easing in the US and austerity in Europe has sent foreign investors to Asia seeking better returns, pumping up the value of Thailand’s baht, which in April hit its strongest level against the dollar since the 1997 Asian financial crisis.