Thailand’s baht was poised for its fourth weekly advance and government bonds rose as global funds boosted holdings of local debt after Fitch Ratings raised its assessment of the Southeast Asian nation.
The currency, which touched a 19-month high on Friday, may have strengthened because of rising investor confidence after the rating upgrade and upward revisions of economic forecasts, Bank of Thailand Governor Prasarn Trairatvorakul said March 13, adding the central bank is not concerned about the appreciation. Fitch raised its rating on Thailand by one level to BBB+ last week, three levels above junk, citing a resilient economy and a more stable political environment.
"Thailand's economy is outstandingly solid among the emerging nations, and that attracts investors," said Koji Fukaya, chief executive officer and currency strategist at FPG Securities Co in Tokyo. "Investors were able to confirm their bullish view with the rating upgrade. Fund inflows are supporting the baht and the bonds."
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