Thai Baht Retreats From 13-Year High on Intervention Risk
Sept. 23 (Bloomberg) — Thailand’s baht retreated from a 13-year high on concern policy makers will step up efforts to curb appreciation that threatens exports and tourism.
The currency has strengthened 5.6 percent this quarter, Asia’s best performance, as overseas investors pumped more than $1.4 billion into the nation’s shares. Net purchases yesterday totaled $138 million, the most since February 2008, exchange data show. The central bank this week won approval to relax curbs on capital outflows and there is speculation more measures will be announced after a new governor takes over on Oct. 1.
“The concern is more about the pace of fund inflows and the market is a bit cautious about what the new central bank governor will do,” said Thanit Satravaha, a currency trader at Thanachart Bank Pcl in Bangkok. “There is also possible intervention risk.”
