Bloomberg News

Baht Near 2-Week High on Speculation Exporters Will Sell Dollars

April 16, 2012

Thailand’s baht was little changed near its strongest level in two weeks as speculation exporters will convert earnings countered stock sales by global funds.

Overseas shipments from Southeast Asia’s second-biggest economy rose 0.9 percent from a year earlier in February after three months of declines, according to government data. Global funds sold $143 million more Thai equities than they bought last week, exchange data show.

“The current level isn’t bad for exporters and their dollar sales will provide some support for the baht,” said Hideki Hayashi, a researcher at the Japan Center for Economic Research in Tokyo. “With local stocks seeing some selling by overseas investors, the baht will remain slightly under pressure.”

The baht traded at 30.81 per dollar as of 8:36 a.m. in Bangkok, compared with 30.82 on April 12, according to data compiled by Bloomberg. Local financial markets were shut on April 13 and April 16 for public holidays.

One-month implied volatility, a measure of foreign-exchange swings used to price options, was unchanged at 4.52 percent.

The yield on the 3.25 percent government bonds due June 2017 rose two basis points, or 0.02 percentage point, to 3.63 percent, according to data compiled by Bloomberg.

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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