Thai Baht Climbs to 19 Month High

Thailand’s baht rose the most in six weeks and government bonds advanced after overseas investors boosted their holdings of the nation’s debt, drawn by yields that are relatively high compared with developed nations.

The currency climbed to the strongest level in 19 months after global funds bought $156 million more sovereign notes than they sold yesterday, the biggest net purchases this month, Thai Bond Market Association data show. Prime Minister Yingluck Shinawatra said yesterday the government is targeting an annual growth rate of 4 percent to 5 percent over the long term. The economy grew 6.4 percent in 2012, official data show.

The baht rose 0.4 percent to 29.61 per dollar as of 9:51 a.m. in Bangkok, the biggest advance since Jan. 29, data compiled by Bloomberg show. The currency touched 29.57, the strongest level since August 2011, and has gained 3.3 percent this year, the most in Asia. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, was unchanged at 5.22 percent.


This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.