Thailand’s main opposition party has nominated the sister of ousted Prime Minister Thaksin Shinawatra as its candidate for the country’s top post in upcoming elections.

Yingluck Shinawatra is seen as a stand-in for Mr. Thaksin and her candidacy is expected to further inflame election tensions.

Ms. Yingluck, a businesswoman, would become Thailand’s first female prime minister if the opposition Pheu Thai Party wins the July 3 polls.

The contest with the ruling Democrat Party is expected to be close.

Mr. Thaksin was ousted by a military coup in 2006 after being accused of corruption and disrespect for the monarchy. He is barred from running for office and is living in self-imposed exile, but remains popular among voters in the countryside.

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