Baht retreats from 16-month high
- Published: 14 Jan 2013 at 10.05
- Online news:
Thailand's baht retreated from a 16-month high amid concern the central bank will intervene to slow gains that hurt exports. Government bonds advanced.
The currency touched its strongest level since September 2011 as global investors bought US$1.6 billion more of sovereign notes than they sold this month through Jan 11, and poured a net $172 million into local equities, stock exchange and Thai Bond Market Association data show. There is a broad-based recovery in Thai exports even as weakness in Europe and Japan persists, the Bank of Thailand said Jan 9 after keeping its policy rate unchanged at 2.75%.
"Funds are coming in and the baht has been strengthening," said Disawat Tiaowvanich, a foreign-exchange trader at Bangkok Bank Pcl (BBL). "The baht may move on the stronger side as inflows will probably continue, but there is concern about central bank action in the market, capping the baht's upside."
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.