Thai Baht Climbs to 16-Year High on Capital Inflows Into Bonds | Bangkok Post: Most recent

Most Recent >

Bond purchases push Baht

  • Published: | Viewed: 2,791 | Comments: 0
  • Online news:
  • Writer: Bloomberg
- +

Thailand's baht touched a 16-year high after global funds boosted holdings of local bonds amid signs policy makers will refrain from curbing capital inflows that have fueled the regions best exchange-rate rally. 

Central bank governor Prasarn Trairatvorakul, who on April 19 said the currency has started to move beyond fundamentals, and Finance Minister Kittiratt Na-Ranong have ruled out capital controls. The baht has advanced 7% this year, beating a 1.9% gain in India's rupee and 0.8% in China's yuan. Foreigners bought $2 billion more Thai sovereign debt than they sold this month through April 19, adding to net purchases of $9.8 billion in the first quarter, official figures show.

Inflows into bonds are continuing to put appreciation pressure on the baht, said Tohru Nishihama, an economist covering emerging markets at Dai-ichi Life Research Institute Inc. in Tokyo. They seem to be tolerant in general with the appreciation and are unlikely to introduce any tough measures.

Keep up-to-date with the latest on coup d'etat with Bangkok Post SMS News. Call *451391000 to subscribe – 39 baht/month (7 days free, available in Thailand only) Bangkok Post SMS News: Deliver only trustworthy news on SMS

This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.

0 people commented about the above

Readers are urged not to submit comments that may cause legal dispute including slanderous, vulgar or violent language, incorrectly spelt names, discuss moderation action, quotes with no source or anything deemed critical of the monarchy. More information in our terms of use.

Please use our forum for more candid, lengthy, conversational and open discussion between one another.

  • Latest
  • Oldest
  • Most replied to
  • Most liked
  • Most disliked

    Click here to view more comments