Baht Gains on Fund Flows as Exports, Consumer Confidence Improve

Thailand’s baht rose to its strongest level in almost a week after global investors pumped money into the nation’s assets on optimism the economy is recovering from last year’s floods.

International funds bought $87 million more Thai equities than they sold last week, taking net purchases this year to $2.8 billion, according to exchange data. Consumer confidence rose for a fourth month in March, a report from the University of the Thai Chamber of Commerce shows. Exports (THNFEXPY) increased 1.2 percent in February from a year earlier, halting four months of decreases, Bank of Thailand data showed on March 30.

“With plenty of liquidity in the developed nations, funds will flow into emerging Asia,” said Tohru Nishihama, an economist at Dai-ichi Life Research Institute Inc. in Tokyo. “Thailand’s exports are showing signs of recovery and that is quite positive for the baht.”

The baht advanced 0.2 percent from April 5 to 30.95 per dollar as of 3:16 p.m. in Bangkok, according to data compiled by Bloomberg. It touched 30.90, the strongest level since April 4. Local financial markets were closed for public holidays on April 6 and yesterday. One-month implied volatility, a measure of foreign-exchange swings used to price options, was unchanged at 4.52 percent.

The yield on the government’s 3.25 percent bonds due June 2017 climbed two basis points, or 0.02 percentage point, to 3.69 percent, according to data compiled by Bloomberg.

To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.

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