Thai baht on Wednesday weakened to the lowest level since September last year with the continuing outflow of short-term foreign capital from the country.

The baht fell 0.3 percent to 31.08 per U.S. dollar Wednesday morning in Bangkok and touched 31.10 earlier, the weakest level in nine months, according to the data compiled by Bloomberg.

Kittiratt Na-Ranong, Thailand's deputy prime minister and finance minister, said on Wednesday that the capital outflow, partly caused by foreign investors' speculation that the United States would gradually trim its monetary stimulus, has helped stabilize the exchange rates.

Foreign investors are selling shares and adjusting investment portfolios in Thailand and in other markets in the Asian region, he said.

According to the minister, at least 12 billion U.S. dollars in foreign capital was transferred into Thailand's stock and bond markets for short-term investment before the end of 2012, amassing pressure on the baht which was pushed into a strong upward trend.

The Thai currency touched 28.56 against the greenback on April 22 and April 19, the strongest level since it was floated in July 1997.

Earlier this month, the Bank of Thailand (BOT) voted unanimously to reduce the policy rate by 25 basis points to 2.5 percent in a bid to stem foreign capital inflow and stabilize the soaring baht, which the businesses said would damage this year's export and GDP.

Kittiratt said it would be unnecessary for the government to impose any more fiscal measures for the time being but the baht's movement will be closely monitored to ensure economic policies are in line with the changing situation. Endit

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