Thai Baht Has Worst Week Since 2006 on Outflows; Bonds Decline
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Thailand’s baht had its worst week since December 2006 on speculation outflows from emerging markets will quicken as the Federal Reserve prepares to cut monetary stimulus. Government bonds dropped.
The currency touched a three-year low of 32.17 yesterday. Global funds sold $917 million more of Thai bonds than they bought this month through yesterday, and pulled a net $903 million from equities, official data show. Thailand’s National Economic and Social Development Board cut its 2013 growth forecast on Aug. 19 as the nation entered recession for the first time since 2009. Policy makers were “comfortable” with a plan to pare stimulus, minutes of the Fed’s July meeting showed.