Bigger India
India, Thailand risk being added to US currency watchlist
This after the two nations exceeded a key threshold on how much it can intervene to curb their respective currencies' gains that the US monitors.
India and Thailand may have to give freer rein to the rupee and baht this year to avoid triggering US accusations that they’re manipulating their currencies to support exports.
The Reserve Bank of India has already exceeded a key threshold on how much it can intervene to curb the rupee’s gains that the US monitors, according to Nomura Holdings Inc.
Policy makers in Thailand have also passed this level with the baht, said Bank of Tokyo-Mitsubishi UFJ Ltd.
Should the two countries’ central banks seek to assuage US concerns – and avoid a range of possible penalties – it would likely lead to gains for their currencies, potentially reducing their export competitiveness.
For all the efforts of policymakers last year, the baht appreciated almost 10% against the dollar, while the rupee climbed 6.4%.