Baht's rally stalls near 17-month high
- Published: 4/02/2013 at 10:02 AM
- Online news:
Thailand's baht was little changed on Monday morning, after strengthening in eight of the last nine weeks, on concern policy makers will intervene to check appreciation that puts exports at risk. Government bonds were also steady.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said last week there is concern the strong baht will hurt tourism and overseas sales. The currency reached 29.66 per US dollar on Jan 31, matching a 17-month high reached on Jan 21, and official data show overseas investors poured a net $4.3 billion into government bonds and stocks this year through Feb 1. Thailand's SET Index (SET) of shares reached its highest level since 1994 on Feb 1.
"Fund inflows and gains in the local stocks should be positive for the baht," said Wee-Khoon Chong, a Hong Kong-based strategist at Societe Generale SA. "But there's a concern about intervention across the region, mainly for some Southeast Asian currencies like the baht."
The baht traded at 29.78 per dollar as of 8.41am in Bangkok, unchanged from its Feb 1 close, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, dropped 30 basis points, or 0.3 percentage point, to 5.27%.
Overseas shipments, which account for about two-thirds of Southeast Asia's second-largest economy, rose 14% in December after a 27% increase the previous month, a Bank of Thailand report showed on Jan 31.
The yield on the government’s 3.625% bonds maturing in June 2023 was little changed at 3.68%, data compiled by Bloomberg show.
About the author
- Writer: Bloomberg News
Position: News agency