Thailand’s baht weakened and government bonds advanced as concern global economic growth is slowing reduced demand for emerging-market stocks.
The MSCI Asia-Pacific Index of shares declined for a fifth day after data this week showed Chinese imports missed estimates in June and Japan’s machinery orders fell the most in more than a decade. China is the biggest market for Thai exports, which account for about two-thirds of its economy, while Japan is the second largest. Bank of Thailand Governor Prasarn Trairatvorakul said on July 3 that risks to growth outweigh inflation pressure as Europe’s financial crisis lingers.
“Recent data are not helping to remove growth concerns,” said Yuji Kameoka, chief currency strategist at Daiwa Securities Co. in Tokyo. “Investors are reluctant to take risks.”
The baht dropped 0.4 percent to 31.75 per dollar, according to data compiled by Bloomberg. The currency touched 31.87 on July 9, the weakest level since June 29. 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 fell four basis points, or 0.04 percentage point, to 3.32 percent as of 8:37 a.m. in Bangkok, according to data compiled by Bloomberg.
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