Bloomberg the Company

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Follow Us

Industry Products

Baht Falls on Speculation Importers to Increase Dollar Purchases

Don't Miss Out —
Follow us on:

Feb. 10 (Bloomberg) -- Thailand’s baht dropped for a second day, retreating from a three-month high, on speculation importers will step up purchases of the dollar to take advantage of a more favorable exchange-rate.

The currency erased its weekly advance and the MSCI Asia-Pacific Index of shares dropped by the most since Dec. 19 after European leaders held back a bailout package for Greece, sapping demand for emerging-market assets. The baht reached a three-month high of 30.68 yesterday as global funds purchased $367 million more Thai equities than they sold this week through yesterday and bought a net $829 million of government notes, data from the stock exchange and the Thai Bond Market Association show.

“The current levels provide a good opportunity for importers to buy the dollar,” said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo. “Concern Greece won’t be able to solve the issue easily is deteriorating sentiment and puts downward pressure on the regional currencies.”

The baht slumped 0.3 percent to 30.85 per dollar as of 3:54 p.m. in Bangkok, according to data compiled by Bloomberg. The currency, which was unchanged from a week ago, may trade between 30.60 and 31 in the next week or two weeks, Hayashi said.

The yield on the government’s 3.25 percent bonds due June 2017 increased six basis points, or 0.06 percentage point, to 3.15 percent this week, according to data compiled by Bloomberg. The rate was unchanged today.

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

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.