The baht hit a 16-year high on continuing capital inflows as Thailand, and the bond market in particular, is expected to remain a popular destination for investor borrowing cheap yen following the Bank of Japan's aggressive monetary policy easing.
The baht rose yesterday to 28.96/99 against the greenback, while the local currency also gained to 28.93/29.46 against 100 yen. The baht is the strongest currency in Asia against the dollar this year, rising 5.4%.
"Offshore funds continue flowing to Thailand and the yen carry trade is also elevating the baht as the yen is expected to weaken further," said a foreign exchange dealer at a local bank.
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