Baht falls, bonds rise
- Published: 1 Aug 2012 at 10.59
- Online news:
Thailand's baht retreated from a four-week high on speculation importers stepped up dollar purchases at the more favorable exchange rate. Bonds gained.
The MSCI Asia Pacific Index (MXAP) of shares snapped a four-day advance before policy decisions from the Federal Reserve and the European Central Bank due this week. A central bank report yesterday showed Thai imports increased five per cent in June from a year earlier, while exports dropped 4.3 per cent.
"We can expect importer demand with the baht hovering around the recent high," said Hideki Hayashi, a researcher at the Japan Centre for Economic Research in Tokyo. "Investors don’t want to take riskier positions before major events like decisions by major central banks."
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