Bloomberg News

Baht Rises From Near June Low as U.S. Data Lifts Regional Stocks

June 27, 2012

Thailand’s baht rose from near this month’s low and regional equities advanced after reports showed U.S. home sales and durable goods orders climbed more than estimated. Government bonds climbed.

The Bloomberg-JPMorgan Asia Dollar Index gained for a third day and the MSCI Asia-Pacific Index of stocks rose the most since June 18 before European Union leaders start a two-day summit in Brussels today to discuss the region’s debt crisis. Thailand said this week exports increased 7.68 percent in May, compared with a 3.67 percent decline in April. The U.S. is the world’s biggest economy and accounted for 10 percent of Thai shipments in the first five months of this year.

“With the good data out of the U.S. and gains in stocks, risk sentiment is quite stable,” said Kozo Hasegawa, a Bangkok- based trader at Sumitomo Mitsui Banking Corp. “Currencies are likely to be quite range-bound before the results of the European summit are coming out.”

The baht rose 0.03 percent to 31.87 per dollar as of 8:30 a.m. in Bangkok, according to data compiled by Bloomberg. The currency touched 31.96 on June 25, the weakest level since May 31. Its one-month implied volatility, a measure of exchange-rate swings used to price options, was little changed at 4.52 percent.

The yield on the 3.25 percent bonds due June 2017 declined one basis point, or 0.01 percentage point, to 3.34 percent, according to data compiled by Bloomberg.

U.S. orders for durable goods rose 1.1 percent in May, more than the 0.5 percent increase predicted in a Bloomberg survey, according to a Commerce Department report yesterday. The National Association of Realtors said pending home sales climbed 5.9 percent, compared with a 1.5 percent gain forecast in a separate poll of economists.

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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