Baht touches 19-month high
- Published: 13 Mar 2013 at 11.07
- Online news:
Thailand's baht touched a 19-month high and government bonds rose as overseas investors pumped the most money into the country's debt in three years.
Global funds bought US$946 million more sovereign notes than they sold on Tuesday, the biggest daily net purchase since Bloomberg began compiling the data in March 2010. Prime Minister Yingluck Shinawatra said March 11 the government is targeting an annual growth rate of 4% to 5% over the long term, after a 6.4% expansion in 2012. Fitch Ratings raised its assessment on Thailand by one level to BBB+ last week, citing a resilient economy and a more stable political environment.
"There's a basic trend of fund inflows to the emerging markets with lots of liquidity provided by central banks in developed nations," said Tsutomu Soma, the fixed-income business unit department manager at Rakuten Securities Inc in Tokyo. "Countries like Thailand with a solid growth outlook are especially popular and attract more funds."
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