Bloomberg News

Baht Drops This Week, Bonds Rise as Thailand’s Inflation Cools

January 06, 2012

Jan. 6 (Bloomberg) -- Thailand’s baht had a second consecutive weekly decline and government bonds rose after inflation cooled to a nine-month low.

Consumer prices increased 3.53 percent in December from a year earlier, the least since March 2011, according to official data released on Jan. 4. The baht halted two days of declines after data yesterday showed that private employers in the U.S. added 325,000 workers to payrolls in December, more than economists forecast.

“Asian currencies have been under downward pressure on Europe’s lingering debt crisis,” said Kozo Hasegawa, a trader at Sumitomo Mitsui Banking Corp. in Bangkok. “We have seen solid U.S. data, which lends some support.”

The baht weakened 0.3 percent this week to 31.65 per dollar as of 3:04 p.m. in Bangkok, according to data compiled by Bloomberg. The currency was little changed from yesterday. It may trade between 31.50 and 31.80 next week, Hasegawa said.

The yield on the 3.25 percent bonds due June 2017 slid 15 basis points from a week ago, the most since the five days ended Dec. 2, to 3.05 percent, according to data compiled by Bloomberg. The rate declined nine basis points, or 0.09 percentage point, today.

--Editors: Ven Ram, Andrew Janes

To contact the reporter on this story: Yumi Teso in Bangkok at yteso1@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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