There have been further falls on the east Asian currency markets, with the Thai currency, the baht, reaching a record low for the second day running.

It lost more than 4% of its value when trading began on Tuesday, falling to about 52 to the US dollar.

The Thai Prime Minister, Chuan Leekpai, said on Monday that because of the deepening financial crisis his Government would seek to renegotiate the terms of its $17bn rescue package with the International Monetary Fund.

The Thai Prime Minister, Chuan Leekpai, wants to renegotiate the IMF deal

To avert further falls in the baht, Finance Minister Tarrin Nimmanahaeminda said the cabinet would issue a statement to urge Thais and exporters with dollars to sell them for baht to help boost the currency.

"Today at the cabinet meeting, I will propose the government issue a statement calling on people and exporters who have dollars to sell them into the market...This will help the baht," he told reporters before the start of the weekly meeting.

The finance ministry and the central bank were looking into additional measures to fend off currency speculation, he said.

The Baht has had its value halved since last summer

Dealers and analysts said the plunge in regional currencies, especially the strong Singapore dollar and Malaysian ringgit, signalled a sustained, massive capital outflow from the troubled Asian region.

This would make it tougher for crisis-hit Thailand, which is weathering its worst economic crisis in decades, to tackle its currency and other economic problems.

The dollar's relentless march against the yen also made matters worse, they said.

"Regional factors drove the baht this low. The ringgit, rupiah, won were all hit. This is a disturbing sign, of money flowing out of the region, not just Thailand," said a dealer with a major European bank.

Back to top | BBC News Home | BBC Homepage	©