Baht Erases Losses as Thailand Rules Out Use of Capital Controls

Thailand’s baht erased earlier losses after the central bank said it isn’t considering imposing capital controls. Government bonds declined.

Increased overseas investment by local companies and private machinery imports have provided “counter-capital inflows,” Bank of Thailand Deputy Governor Pongpen Ruengvirayudh said today in an interview in Bangkok, adding that a stronger baht is not always a “bad thing.” The currency fell as much as 0.4 percent earlier amid speculation local importers will increase dollar purchases to take advantage of the baht’s rally to a five-week high yesterday.