Thai Baht Reaches Two-Week High on China Exports; Bonds Decline

Thailand’s baht advanced to a two- week high as better-than-expected data from China improved the Southeast Asian nation’s export outlook. Government bonds fell.

Chinese overseas sales increased 11.6 percent in October from a year earlier, according to official figures released Nov. 10. The median estimate in a Bloomberg survey was for a 10 percent gain. The world’s second-biggest economy is Thailand’s largest export market, taking 11.7 percent of its shipments in the first nine months of this year.

China’s economy is beginning to improve, which is positive for other Asian countries,” said Yuji Kameoka, chief currency strategist at Daiwa Securities Co. in Tokyo. “Good data from China also improves risk sentiment among investors.”

The baht appreciated 0.1 percent to 30.63 per dollar as of 8:46 a.m. in Bangkok, according to data compiled by Bloomberg. It touched 30.59 earlier, the strongest level since Oct. 29. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 4.27 percent.

Thailand’s exports increased 0.2 percent in September, compared with a 7 percent drop in August, official data show.

The yield on the 3.625 percent notes due May 2015 rose two basis points, or 0.02 percentage point, to 2.85 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: James Regan at jregan19@bloomberg.net

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