Thailand’s baht, bonds and stocks rose as Prime Minister Yingluck Shinawatra said she will dissolve parliament after lawmakers from the main opposition party quit en masse to join protests aimed at ousting her.
The dollar touched the lowest level in eight months against a basket of 10 major peers on concern political wrangling over the U.S. debt limit disrupted growth and will prompt the Federal Reserve to delay tapering stimulus.
The dollar slid to the weakest since February as appetite for higher-yielding assets rose on bets the Federal Reserve will delay tapering stimulus after a last-minute deal pushed the political battle over U.S. spending into 2014.
Thailand’s baht was set for its biggest weekly advance in a month and sovereign bonds rose as foreigners increased holdings of the nation’s assets after the U.S. ended a budget impasse and averted a debt default.
Thailand’s baht gained, extending a rebound from last month’s three-year low to 4 percent, as U.S. lawmakers’ failure to resolve a budget impasse damped demand for the dollar. Government bonds advanced.