The baht has breached 29 per US dollar for the first time since 1997, while government bonds rose as unprecedented monetary easing in Japan fuelled demand for the country's assets.
The currency jumped 1.2% from its April 5 close to 28.96 against the greenback, as of 11:48am in Bangkok, according to data compiled by Bloomberg. That is the biggest advance since Feb 29, 2008, when the central bank announced plans to scrap capital controls that restricted inflows. The yield on sovereign debt due June 2023 fell three basis points to 3.46%, the lowest level since March 28. Local financial markets were shut on Monday for a holiday.
"Japan's monetary easing is leading to speculation of more incoming funds to Asia," said Disawat Tiaowvanich, a foreign-exchange trader at Bangkok Bank Pcl (BBL). "That's supporting the baht and government bonds."
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