Funds Pile Into Thailand as Vaccine Progress Boosts Tourism Hopes - Bloomberg

 Funds Pile Into Thailand as Vaccine Progress Boosts Tourism Hopes 

Marcus Wong 

 

Image: Bloomberg (for reference only)

 

(Bloomberg) -- Progress toward a coronavirus vaccine is fueling optimism Thailand will soon reopen for mass tourism. Overseas investors are already piling into the country's financial markets. 

 

Inflows into Thai sovereign debt have climbed to the highest in 17 months in November, even though the month is less than half over. The baht has strengthened almost 3% since the end of October, making it the best-performing currency in Asia after the Indonesian rupiah. New central bank Governor Sethaput Suthiwart-Narueput will hold his first monetary policy meeting next week, though he's unlikely to do much to deter foreign funds.

 

"Foreigners have been mainly buying the front-end of the Thai debt curve for exposure to baht gains," said Poon Panichpibool, a strategist at Krung Thai Bank Pcl in Bangkok. They are betting on Thai currency gains, and it looks like the baht will strengthen further over the next 12 months as the vaccine will be a major trigger for tourism arrivals, he said.

 

Full story: https://www.bloombergquint.com/onweb/funds-pile-in-as-vaccines-outweigh-thai-tensions-seasia-rates