Thai Baht Demonstrates Best Performance Since February 2008

The Thai baht strengthened today, showing this month the best performance since February 2008, after the central bank raised the borrowing costs and as the pace of the nation’s economic growth was the fastest in 15 years.
The Bank of Thailand raised the borrowing costs last week for the second time this year. The policy makers suggested that the rates remain “very low compared to the economic growth even after the increase”. The nation’s gross domestic product grew 9.1 percent in the second quarter of this year, following the increase by 12 percent in the previous three months. The good fundamentals attracted more foreign investors to Thailand, resulting in the inflows into the stocks and the bonds and making another rates hike possible.
USD/THB currency pair went down from 31.15 to 31.32 today as of 9:03 GMT after it touched 31.47.

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