Thailand FX spat dampens bond sentiment

18 Feb 2013

Disagreement between the MoF and the central bank about the baht’s appreciation have driven some global investors to take profits on Thai bonds for fear of political pressure on monetary policy.

A dispute between the Bank of Thailand (BoT) and the Ministry of Finance (MoF), about the best way to prevent the currency from strengthening further, has caused bond price volatility.

The Thai baht is at its strongest for around 17 months –THB29.78 to the dollar at the time of ...

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