Sign up | Log in



Home  >>   Daily News  >>   Thailand News  >> Economy  >> Baht sets another high as yen nosedives

NEWS UPDATES Asean Affairs   18 April 2013  

Baht sets another high as yen nosedives

The baht hit a 16-year high on continuing capital inflows as Thailand, and the bond market in particular, is expected to remain a popular destination for investor borrowing cheap yen following the Bank of Japan's aggressive monetary policy easing.

The baht rose yesterday to 28.96/99 against the greenback, while the local currency also gained to 28.93/29.46 against 100 yen. The baht is the strongest currency in Asia against the dollar this year, rising 5.4%.

"Offshore funds continue flowing to Thailand and the yen carry trade is also elevating the baht as the yen is expected to weaken further," said a foreign exchange dealer at a local bank.

Carry trade involves borrowing low-yielding currencies to invest in high-yielding currencies. The yen is always the prime currency for carry trade activities as its current interest rate is close to zero and the the Bank of Japan just announced a huge stimulus programme aimed at kickstarting the economy and dragging it out of years of deflation.

Japan's easing policies are appropriate and the impact on the yen is a logical consequence, said IMF chief economist Olivier Blanchard to Bloomberg.

At its policy meeting earlier this month, the Bank of Japan pledged to double the monetary base in two years through purchases of government bonds. Governor Haruhiko Kuroda said last week that while monetary easing tends to weaken a currency, its polices are not aimed at exchange rates.

The yen has depreciated about 20% against the dollar the past six months, extending the drop after the stimulus started this month.

The dealer said dollar demand from gold dealers following the sharp decline in global gold prices during Songkran helps to limit the baht's gain, but the amount is not so substantial that it can reverse the trend.

"Gold dealers gradually bought dollars when the gold price started sliding during the holiday, so their orders today are not significant," he said.

He predicts the baht to continue to gain against the dollar over the long run, with persistent capital inflows as the central banks of the world's major economies maintain their loose monetary policies.

In a related development, foreign investors were net buyers of 3.44 billion baht in Thai bonds yesterday. Foreigners were net buyers of 107.80 billion baht in January, 80.97 billion in February, 93.64 billion in March and 41.63 billion between April 1 and 12.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories    18 April 2013   Subsribe Now !
• Toyota's hybrid vehicle sales pass 5 million Subcribe: Asean Affairs Global Magazine
• Gold prices dive 2,350 baht Asean Affairs Premium
• Fishball noodles, mixed vegetable rice cost more: CASE study
• New homes to have optical fibre termination points pre-installed from 1 May
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• BIR explains why Forbes richest Filipinos not among top taxpayers
• President Sang thanks Kansai firms for support
• TFEX announces temporary halt of All Gold and Silver Futures trading
• Thai bourse lists BTSGIF, the first Thai infrastructure fund, on April 19
• Thai bourse gold futures trading prices align with global market
• Genting stocks among major decliners
• Baht sets another high as yen nosedives
• Cambodia 'altering maps'
• Loan Approval Puts Thailand-Laos-Vietnam Rail On Track
• EU-ASEAN Conference Stresses the Need to Move Ties to a Higher Level
Asean Analysis             25 March 2013   Advertise Your Brand
• Asean Analysis- March 25, 2013  
• Asean Weekly- March  22, 2013 Sponsor Our Events
Asean Stock Watch      18 April 2013 
• Asean Stock Watch- April 18, 2013  

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2017 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand