Baht posts weekly gain af­ter cbank lifts in­ter­est rate

The Pak Banker - - Company& -

BANGKOK: Thai­land's baht com­pleted its first five-day ad­vance in four weeks and in­ter­est-rate swaps had the biggest weekly gain since 2009 af­ter the cen­tral bank un­ex­pect­edly raised bor­row­ing costs, Blomberg re­ported .

Govern­ment notes dropped this week, send­ing the bench­mark five-year yield to a six­month high, af­ter the Bank of Thai­land boosted its one-day bond re­pur­chase rate by a quar­ter of a per­cent­age point to 2 per­cent on Dec. 1, a move pre­dicted by only five of 17 econ­o­mists in a Bloomberg sur­vey. The rest ex­pected no change. "The rate hike in­di­cates pol­icy mak­ers' con­fi­dence in the eco­nomic strength," said Mi­nori Uchida, a Tokyo-based se­nior an­a­lyst at Bank of Toky­oMit­subishi UFJ Ltd. -PB News

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