The baht rose the most since 2007 and government bonds climbed after the United States Federal Reserve unexpectedly refrained from cutting monetary stimulus that has spurred demand for emerging-market assets.
The MSCI Asia-Pacific Index of shares rose 1.3% after the Federal Open Market Committee said it wants to see more evidence of a recovery in the world’s largest economy before starting to taper its US$85 billion a month of bond purchases. Economists surveyed by Bloomberg had forecast the Fed would reduce the stimulus by $5 billion.
The baht jumped 1.8%, the most since January 2007, to 31.1 per dollar as of 8.17am in Bangkok, according to data compiled by Bloomberg. It reached 31.055 earlier, the strongest level since July 26. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, dropped eight basis points to 7.9%.
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