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Thai Baht Advances on Hopes for Overseas Inflows

July 22, 2014 at 16:42 by Vladimir Vyun

H.M. King Bhumibol Adulyadej on 1,000-baht banknotesThe Thai baht advanced today on speculations that government spending will improve the nation’s economy, attracting investors to the country. The currency rose to the highest level since November.

The junta, which seized the power through a military coup, is spending money on improving the nation’s economy, which declined in the first quarter but now may return to growth. The positive economic outlook was attracting overseas inflows, making the baht one of the best-performing currencies of emerging markets. Yet some analysts warn that the currency’s gains will be short-lived due to expectations of an interest rate hike from the Federal Reserve and risk aversion that prevails on the Forex market currently.

USD/THB was down from 31.8850 to 31.7650 as of 16:41 GMT today, reaching the low of 31.7450 intraday.

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