Thailand's baht touched a one-month high as United States economic data that trailed estimates eased concern the US Federal Reserve will reduce stimulus, which has boosted demand for emerging-market assets. Government bonds fell.
The currency pared gains after a preliminary survey of purchasing managers suggested manufacturing contracted by more than forecast in China, Thailand's largest export market. Overseas sales rose 1.5% in June after a 5.3% drop the previous month, according to the median estimate of economists in a Bloomberg survey before customs data July 26.
"The weaker US economic data weighs on the dollar broadly," said Hideki Hayashi, a researcher at the Japan Centre for Economic Research in Tokyo. "China's manufacturing data hurts risk sentiment and raises concern about regional exports, putting downward pressure on Asian currencies."
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