Back
12 Sep 2013
Thailand Baht lifted by improving CHinese outlook
FXstreet.com (London) -As the effects of increasing confidence in Chinese macro conditions continue to lift the Asia-Pac zone, the Thailand baht continues to post multi week highs.
Capital inflows have helped push the Baht to a three-week high, with the Baht repeatedly testing the THB31.65 support against the US dollar.
The Thai Bond Market Association today reported a net inflow of foreign company investment, buying up a net THB8bn of debt.
In a speech to the World Economic Forum in Dalian yesterday, Chinese Premier, Li Keqiang, gave assurances that Beijing was was confident it could meet its economic goals through structural reform. Li ruled out the need to significantly loosen fiscal or monetary policy to stimulate short-term Chinese growth.
"Some people expressed concern about whether China's growth might decelerate too fast, as some other countries experienced, or even see a so-called hard landing," said Li, but added that the country’s economic fundamentals were “sound”.
The easing worries over the threat of decelerating Chinese growth, as well as encouraging statements about currency liberalisation, has had a knock on effect throughout those countries heavily dependent on the superpower as a trading partner, with the Bloomberg JP Morgan Asia Dollar Index being driven down to 115.37.
Capital inflows have helped push the Baht to a three-week high, with the Baht repeatedly testing the THB31.65 support against the US dollar.
The Thai Bond Market Association today reported a net inflow of foreign company investment, buying up a net THB8bn of debt.
In a speech to the World Economic Forum in Dalian yesterday, Chinese Premier, Li Keqiang, gave assurances that Beijing was was confident it could meet its economic goals through structural reform. Li ruled out the need to significantly loosen fiscal or monetary policy to stimulate short-term Chinese growth.
"Some people expressed concern about whether China's growth might decelerate too fast, as some other countries experienced, or even see a so-called hard landing," said Li, but added that the country’s economic fundamentals were “sound”.
The easing worries over the threat of decelerating Chinese growth, as well as encouraging statements about currency liberalisation, has had a knock on effect throughout those countries heavily dependent on the superpower as a trading partner, with the Bloomberg JP Morgan Asia Dollar Index being driven down to 115.37.