By Chalathip Thirasoonthrakul
BANGKOK (Reuters) - Thousands of anti-government protesters headed to the heavily guarded home of Thailand's prime minister on Wednesday in the fourth day of protests aimed at forcing him to call elections.
Despite the tensions, Thai stocks soared to a year-high and the baht currency reached a 21-month peak. Investors have been emboldened by the lack of violence in the opposition campaign so far and the view that Prime Minister Abhisit Vejjajiva would survive the crisis.
Economists say the central bank will likely bring forward an expected interest rate rise that could have been delayed by unrest. Benchmark five-year bond yields dropped two basis points to 3.53 percent as prices rose.
"The political event does not have as much teeth as expected," said Chakkrit Charoenmetachai, an analyst with Globlex Securities, adding that foreign money should continue to flow into Thai assets if the protest did not end in violence.
But the supporters of ousted premier Thaksin Shinawatra are not letting up in their campaign for new elections.
Wearing trademark red shirts and honking horns, singing folk songs and waving red flags, protesters on motorcycles and in pick-up trucks drove slowly towards Abhisit's house in an affluent Bangkok neighbourhood where they planned to splash donated blood.
The protesters say the pouring of their blood is a "symbolic sacrifice for democracy" after demands for elections were rejected. It is also bid to re-energise a movement that appears to be waning.
Political analysts say a violent clash is still possible but looks increasingly unlikely. Abhisit has not stayed at his home since Friday and has instead taken refuge at a military base, keeping a low profile.
On Tuesday, the "red shirts" poured bottles of their own blood -- about a teaspoon from each protester -- outside Abhisit's office and later at the headquarters of the premier's Democrat Party. The blood splashing followed an unorthodox ritual by a priest in white garb to curse the premier.
'NOT SURE WE WILL WIN'
At the main rally site on a central Bangkok bridge, some "red shirts" were showing visible signs of fatigue after days of living on Bangkok's streets under scorching sun.
Of up to 150,000 demonstrators who massed on Sunday night, many had left. Police say about 40,000 remained on Wednesday -- a number that is still relatively large compared to past protests.
Despite days of fiery rhetoric by demonstrators on how the mainly rural "red shirts" have been marginalised by the military, urban elite and royalists who back Abhisit, some expressed frustration about the rally's lack of impact and clear direction.
"I am still going every night but I am not sure we will win this time, especially without any real bloodshed," said Pitaya Boonkum, a Bangkok taxi driver from northeastern Roi-et province.
"Red shirt" leaders, however, lauded the big show of support as a victory for their movement. "We have put concepts of class differences and double standards into the public's mind," Weng Tojirakarn, a protest leader, told Reuters.
Veera Musikapong, another protest leader, said the group is considering what to do next. "Our utmost consideration is to the people. Our objective of toppling the government and the elite will be achieved peacefully even if it takes long."
The twice-elected Thaksin was ousted in a military coup in 2006 and later sentenced in absentia to two years jail for graft. He fled into exile shortly before his sentence was passed and lives mainly in Dubai, but is now thought to be in Europe.
Analysts said a drop in numbers may force the leaders to start looking for ways to end the rally.
"It's tricky for them. They have to do it in a way that does not embarrass the leaders and disappoint participants too much because that could undermine their credibility among their own supporters," said political scientist Somjai Phagaphasvivat.
"But in the long term, (keeping the rally peaceful) helps their image, especially among the public who are on the fence -- people who agree with their cause but have been reluctant to join because they do not support Thaksin and disagree with violence."
($1=32.55 Baht)
(Writing by Ambika Ahuja; Additional reporting by Ploy Ten Kate; Editing by Jason Szep and Raju Gopalakrishnan)
