Pound Sterling to Thai Baht (GBP/THB) Exchange Rate – Baht makes biggest gains in three-weeks

The Thai Baht has made it biggest upward movement in three-weeks against the Pound, and other major peers after an election was held without incident.

The market briefed a brief sigh of relief after the snap general election passed without any major violent episodes raising optimism that the nation’s political troubles could be easing. The election, which was hastily called to try and stem the waves of protests against the government of embattled Prime Minister Yingluck Shinawatra is the third of its kind to be held since a coup in 2006.

“There was some concern surrounding the election but it ended without any chaos, leading to some buy-backs of the Baht. But a rebound in the Baht may be limited as there’s no change in the situation with political unrest continuing,”said a currency trader

Since the protests began over 600 people have been injured and ten people have died as violence spread across Thailand.

The Baht is likely to remain under sustained pressure after opposition leader Suthep Thaugsuban declared that the election will be annulled due to his group blocking candidates from registering in some provinces of the country. Some polling stations were shut also. Despite voting completed in 89 percent of more than 90,000 polling stations nationwide, 69 constituencies in 18 provinces failed to go through with the voting and thus will not be able to generate a Member of Parliament.

The Pound meanwhile came under pressure following the release of a manufacturing PMI report which came in weaker than economist expectations. Concerns over a potential housing bubble in the UK are also weighing.