Thailand’s baht fell the most since January and bonds dropped on Federal Reserve Chair Janet Yellen’s comment that interest rates could be raised “around six months” after the central bank ends its stimulus program.
Thailand’s baht gained this week, after falling in each of the previous two periods, on increased fund inflows as anti-government protesters removed blockades at four main intersections in central Bangkok.
Indonesia’s rupiah is set to snap its world-beating gains of the past week, trading patterns suggest, amid concern a clampdown on commodity exports will swing the nation’s trade balance back to the red.
The dollar may extend this year’s 12 percent climb against the euro even after Europe crafted a $1 trillion plan to rescue Greece and other debt-laden governments, said Deutsche Bank AG, the world’s biggest currency trader.
Japan is likely to intervene in the foreign-exchange market if the yen strengthens to the 75 level against the dollar again after reaching a postwar high last week, Koji Fukaya, chief currency strategist in Tokyo at Credit Suisse Group AG said in an interview. Investor trading will probably reflect nervousness and be driven by movements in U.S. stocks and comments by Japanese officials, he said.
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.