The baht led gains among emerging Asian currencies on Tuesday as the dollar fell on inflation concerns, while Thai stocks inched higher in low-volume trade a day before the country's central bank meeting.
The baht gained up to 0.7%, and was at its strongest in nearly two months as the greenback dipped, with traders awaiting key price data in the United States on Wednesday.
Taiwan's dollar, the Philippine peso and the Singapore dollar gained between 0.1% and 0.3%.
Strong inflation likely would rekindle talk of the US Federal Reserve raising interest rates earlier than expected, which would be at odds with the policy of most Asian central banks to hold rates steady to support their pandemic-hit economies.
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Optimism over Thailand reopening the country to visitors to revive its tourism sector was also supporting the baht, OCBC Bank analysts said in a note.
Thai stocks rose 0.3% as a Reuters poll expected the central bank to hold interest rates at a record low 0.50% at its policy meeting on Wednesday.
Equity markets in the region were mixed, with Philippine stocks extending gains to a sixth session, adding 0.6% to hit a 20-month high despite weak third-quarter growth figures.
Mizuho Bank analysts wrote there was a clear case to be made that growth momentum in the Philippines was on a better footing, despite the slowdown.
"Social restrictions across the archipelago have been eased, vaccination rates have picked up and activity data is beginning to show signs of life," they said. "This is not to say that the recovery is robust, but that it is promising."
Taiwanese stocks led gains in the region, gaining up to 1% and hitting a two-month peak.
On the downside, stocks in Singapore and Malaysia slumped 0.3% and 0.7%, respectively.
Highlights:
** Indonesian 10-year benchmark yields were down about 2.2 basis points to 6.156%
** Singapore's 10-year benchmark yield eased 2.3 basis points to 1.704%
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