The Thai baht has strengthened to a six-year high against the US dollar because of increasing foreign demand. It now stands at 38.06 baht to the dollar. The gain in the Baht is likely to hurt the competitiveness of the country's exports. Macquarie Research economist Kitti Nathisuwan said that demand for the Thai baht increased after the central bank raised its key interest rate to 4.75%, the highest level since 2000, to counter inflation.
Fuel price hikes are likely to have a minimal impact on Malaysia's consumer prices, according to a study by the Ministry of Domestic Trade and Consumer Affairs. The fuel cost component in most industries and businesses in the country is small. A 20% increase in fuel price is estimated to result in an average increase of 0.3% in the total costs in 36 food industries.
Romanian Prime Minister Calin Popescu Tariceanu has told his economic advisor to discuss with local banks their involvement in the planned sale of 8% in Petrom to the company's employees. Tariceanu said that involving only one bank in the deal, to finance the purchase of the 230 million euro stake, would not be appropriate. Earlier last year he rejected such a sale involving CSFB acting on behalf of employees.
Wages in the Czech Republic will grow slower in 2006 than previously expected, the labour ministry's latest forecasts revealed. Wages will increase by 5.7%, down by 0.7% compared with last year.
Copper registered a record high price, climbing 2% yesterday to, 2.757 dollars a pound on the London Metal Stock Exchange. The three-month value stood at 2.729 dollars a pound and the 15-month quotation reached 2.546 dollars. At the same time, copper annual average prices stood at 2.286 dollars a pound, Factors driving rising red metal prices are: still funds' purchases, low inventory levels, demand from China and the strike at La Caridad mine, in Mexico.
Proposals by Mexican presidential candidate Andres Manuel Lopez Obrador to cut electricity, gas and fuel prices by reducing public sector salaries are unfeasible and contradictory, Mexico's Private Sector Economic Studies Centre said in its weekly report. A 5% cut in energy prices would cut government revenues to the tune of 23.3 billion pesos ($2.1 billion), almost equivalent to the social development federal budget for 2006, the think tank said. State power company CFE would lose 8.44 billion pesos and state oil company Pemex 14.87. Elections are scheduled for July 2.