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Thailand's Rallying Currency Proves a Headache for Its Central Bank

  • Baht supported by $2.1 billion of bond inflows this year
  • Currency’s resilience could hurt exports: AllianceBernstein
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Photographer: Brent Lewin/Bloomberg
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Thailand’s popularity among bond investors is creating a headache for policy makers counting on exports and tourism to drive growth.

Some $2.1 billion of foreign money has flowed into the nation’s debt this year, making it the top destination among Southeast Asia’s emerging markets. That’s buoying the baht, the region’s best developing-nation performer in 2017, and spurring speculation the currency will cope with rising U.S. interest rates better than its peers.