Thailand’s baht fell to within 0.4 percent of a nine-month low and bonds dropped as investors wait for a signal from the Federal Reserve on the future of its stimulus program that has spurred fund flows to emerging markets.
Thailand’s baht fell to an eight- month low and government bonds declined as international investors cut holdings of the nation’s assets amid speculation the Federal Reserve will rein in its monetary stimulus.
Asian currencies fell to the lowest level in nine months after U.S. jobs data fanned speculation the Federal Reserve will rein in stimulus and as signs of a slowdown in China dimmed the outlook for regional trade.
Thailand’s baht was set for a seventh weekly slide, the longest run of losses since February 2009, and government bonds fell on bets foreign funds will trim holdings of local assets should the Federal Reserve reduce stimulus.
Emerging-market stocks headed for the lowest level in more than six weeks on concern mutual fund outflows will accelerate as investors weigh the prospect of a cut in Federal Reserve stimulus. Turkish shares slid after a fifth night of anti-government protests.
Thailand’s baht fell to the weakest level since January and government bonds dropped after overseas investors trimmed holdings of the nation’s assets on concern policy makers will impose measures to stem inflows.
The worst month in a year for emerging-market currencies will prove to be more than a momentary bout of weakness to strategists at firms from UBS AG to Societe Generale SA who see the Federal Reserve weaning investors off its extraordinary stimulus.
Thailand’s baht was poised for its biggest monthly decline in a year and government bonds fell as overseas investors reduced holdings of the nation’s debt amid concern policy makers will stem fund inflows.