Baht gains most in three weeks Thursday , November 14, 2013 10:02 AM Bangkok Post Thailands baht rose the most in three weeks and bonds gained after Janet Yellen, nominated to be the next Federal Reserve chief, said the United States economy must improve before stimulus that has boosted emerging markets is cut. Asian currencies climbed after Yellen said in testimony prepared for Thursdays appearance before the Senate Banking Committee that Americas economy and job market are performing far short of their potential. Foreigners pulled a net US$1.6 billion from local bonds and equities this month through Wednesday amid speculation Fed will start tapering its stimulus in December, and on concern that anti-government protests in Thailand sparked by a proposed amnesty bill will hurt growth. The dollar is weaker after Yellens remarks yesterday as perhaps fewer people see a December tapering, though there’s no concrete view yet, said Disawat Tiaowvanich, a currency trader at Bangkok Bank Plc. The political situation in Thailand has been impacting foreign flows via stocks and bonds, but it’s not a big issue at this moment. The baht rose 0.4%, the most since Oct 25, to 31.48 per dollar as of 9.29am in Bangkok, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, fell one basis point, or 0.01 percentage point, to 5.99%. Orderly Markets Capital flows and financial-market moves have been orderly, Bank of Thailand Governor Prasarn Trairatvorakul said on Wednesday, adding the central bank does not see the need to intervene. The number of protesters at three locations in Bangkok has declined as of Nov. 12 after the Senate voted to reject the government’s amnesty bill, national police chief Adul Saengsingkaew told reporters on Wednesday. The yield on the 3.625% sovereign bonds due June 2023 declined three basis points to 4.02%, data compiled by Bloomberg show. ING Groep NV raised its year-end forecast for Thailands 10-year yield to 4.4% from 3.9%, tracking an increase in US Treasury yields, Tim Condon, Singapore-based head of Asia research, wrote in a research note on Thursday. The comparable US rate has climbed 16 basis points this month to 2.72%, while the Thai yield has increased eight basis points, data compiled by Bloomberg show.
Posted on: Thu, 14 Nov 2013 04:08:18 +0000
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