Baht snaps 3-day rally

Published: 10 Jan 2013 at 09.54
Online news: News

Thailand's baht fell, snapping a three-day rally, on speculation the central bank will intervene to slow gains that may hurt exports. Bonds were steady.

The Bank of Thailand will monitor capital flows, it said yesterday after keeping the benchmark interest rate unchanged at 2.75%. The baht touched a 10-month high on Jan 3 as overseas investors bought 9.9 billion baht (US$327 million) more local stocks than they sold this year through on Wednesday and pumped a net $1.3 billion into sovereign notes, data from the stock exchange and the Thai Bond Market Association show.

"Emerging-market currencies, especially in Asia, have been strengthening versus the dollar with fund inflows to the region," said Tsutomu Soma, manager of the investment trust and fixed-income business unit at Rakuten Securities Inc. in Tokyo. "The central bank will not try to reverse the trend but may want to slow the pace of appreciation."

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DickFarang
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Discussion 3 : 11 Jan 2013 at 10.353
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@ Discussion 2 (boons):

People who buy on credit (and that is probably the majority of Thais) will benefit from a collapse of the Thai baht.

I play safe and invest in some gold.
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boons
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Discussion 2 : 10 Jan 2013 at 14.372
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The baht will eventually collapse as it did in 1997 because this government is spending out of control, and exercising unsustainable populist policies which will ultimately do serious economic damage, But before that happens, remember to enjoy these bubble-years. I will be enormous fun ...until one day it isn't. Just don't buy anything you can't sell quickly. And do not under any circumstances take on debt.
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DickFarang
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Discussion 1 : 10 Jan 2013 at 12.151
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I think the Thai baht is hugely overvalued, but if this government wants to continue Korn’s nonsense, good luck to them.
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Baht snaps 3-day rally | Bangkok Post: business