Thailand’s interest-rate swaps fell to the lowest level in more than three years as concern that the nation’s political crisis will worsen an economic slowdown spurred bets of a further reduction in borrowing costs.
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.
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.
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.
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.