Baht Declines to Four-Month Low on First Rate Cut Since October
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Thailand’s baht fell to a four-month low as the central bank lowered borrowing costs for the first time since October. Government bonds fell, driving the 10-year yield to a one-month high.
The Bank of Thailand cut its one-day bond repurchase rate by a quarter of a percentage point to 2.5 percent, as forecast by 15 of 24 economists surveyed by Bloomberg. One predicted a half-point reduction and eight saw no change. The Dollar Index, which tracks the greenback against six major counterparts, traded near its strongest since July 2010 after a report showed yesterday that U.S. consumer confidence is at a five-year high.