Thailand’s Baht Weakens as Stock Gauge Underperforms Asian Peersby
Thailand’s baht fell to a two-week low, bucking the trend of most other Asian currencies, as stocks in the nation declined.
The Bangkok SET Index slumped 1.4 percent, underperforming regional bourses which were mostly higher after weaker-than-expected U.S. jobs data curbed bets the Federal Reserve will raise interest rates this month. Some investors had placed sell orders on Thai shares on concern that valuations were too expensive, according to Finansia Syrus Securities PCL.
The baht’s weakness was “due to flows coming out of the equity market,” said Stephen Innes, a senior trader at Oanda Asia Pacific Pte Ltd. in Singapore. “The equity market is being sold rather aggressively.”
The baht declined 0.3 percent to 34.712 per dollar as of 4:29 p.m. in Bangkok, according to data compiled by Bloomberg. The currency earlier depreciated to 34.762, the weakest since Aug. 22.
Government bonds fell, with the 10-year yield rising three basis points to 2.30 percent, the highest since the securities were sold last month, data compiled by Bloomberg show.