The weakening of the euro against the US dollar would not have any substantial impact on the baht or the Thai export sector, Suchart Sakkarnkosol, senior director at the Bank of Thailand, said on Wednesday.

The weakening euro will have only a minimal effect on Thai exporters as most Thai producers are paid in US dollars, Mr Suchart said.

He admitted the recent political turmoil had caused an outflow of some foreign investment, but it would not have any effect on the value of baht.

The central bank would keep a close watch on the financial crisis in Hungary to determine its impact on the Thai economy.