The Thai baht advanced today, trading near the highest level since 1997. Other Asian currencies, except the yen, also advanced on foreign capital inflows.
Investors are attracted to Asian economies, which for the most part looks better than economies in other parts of the world. Aggressive quantitative easing in Japan make speculators takes their money elsewhere. Thailand is one of destinations for foreign capital, especially for carry traders who want to profit from interest rate difference between developed nations and emerging markets. Thai borrowing costs are not as big as in some other counties, but definitely above the near-zero rates of such big economies like Japan and the United States.
USD/THB went down from 29.0350 to 29.0250 as of 8:17 GMT today. The currency pair fell below the 29 level on April 10 for the first time since devaluation in 1997.
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