Costa Rica Fights Currency Gain as Thailand Talks Baht Weaker
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Costa Rica and Thailand joined a growing chorus of developing nations expressing alarm at the appreciation of their currencies as increased monetary easing in the U.S. and Japan spurs demand for higher-yielding assets.
Costa Rica plans to reduce interest rates to discourage capital inflows after the colon reached the strongest in almost five years. Thailand’s baht retreated from a 17-month high today after Finance Minister Kittiratt Na-Ranong said the exchange rate is “not at a good level” and exporters will face difficulties should it strengthen further. Currencies in Colombia, Poland and Romania reached their strongest levels this month since at least February 2012.