Thailand's currency falls to 6-year low as foreign investors dump stocks while economy lags

MarketsAssociated Press

Thailand's currency has fallen to a six-year low against the dollar as foreign investors dump stocks while waiting for the country's economy to pick up.

The baht dropped to 35.18 to the dollar Wednesday, its lowest level since 2009.

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Analysts say the sinking baht has resulted in increasing portfolio outflows. Monthly outflows in the past six months averaged around $1 billion, a decade high.

Foreign investors sold $774 million of shares last month, leading the Stock Exchange of Thailand Index to drop 4.3 percent in July.

Thailand has been going through a slow and painful recovery since last year's military coup. The central bank has cut its target rate twice this year, which caused the currency to depreciate.