The Thai baht gained today, reaching above 29 per dollar for the first time since 1997, as excessive quantitative easing in Japan led to capital inflows to other Asian nations, including Thailand.
The near-zero interest rates in Japan drive investors to take money from the country and invest them in economies with higher returns (the practice known as carry trade). Thailand looks an attractive option with its stable economic and political environment. The baht has rallied 1 percent from last week’s close, the biggest gain since June 4. Bank of Thailand Governor Prasarn Trairatvorakul said that the central bank may intervene if currency rises too much.
USD/THB fell from 29.2350 to 28.9850 as of 14:50 GMT today and touched the low of 28.9050 earlier.
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