Japan baht speculation suspected
- Published: 26 Mar 2013 at 16.53
- Online news:
The baht reached its lowest level in a week on Tuesday, on speculation companies from Japan, the biggest foreign investor in Thailand, are sending profits home before the end of the fiscal year on March 31.
Japanese firms accounted for 64 per cent of projects approved by the Thai Board of Investment in 2012, data compiled by the Japan External Trade Organisation show. The baht reached its strongest level since 1997 last week and has appreciated 4.3 per cent against the dollar this year, the most in Asia, as overseas investors pumped a net $9.3 billion into the nation's debt, Thai Bond Market Association data show.
"We have a lot of Japanese companies in Thailand and this is the end of their fiscal year, so Japanese companies sending money back home puts some downward pressure on the baht," said Pareena Phuangsiri, a Bangkok-based analyst at Kasikornbank. Inflows will continue and the baht will probably stay near the current level, she said.
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