Foreign investment in Thai bonds hit record; baht near 3-1/2 years high

Foreign holdings of Thai bonds hit a record high of 902 billion baht ($28.15 billion) this week as fund inflows into Thailand's debt market continued, industry data showed on Thursday, pushing up the baht to a near 3-1/2 year high. In 2018 so far, foreign investors have bought a net 52.6 billion baht worth of Thai bonds. They purchased 223 billion baht net in 2017, according to the Thai Bond Market Association (ThaiBMA).
Thailand's strong economic fundamentals and political stability have attracted money as foreign investors viewed the country as a safe haven, ThaiBMA President Tada Phutthitada told reporters on Thursday. The baht has appreciated 1.6 percent against the US dollar so far this year and has been Asia's best performing currency, after rising 9 percent in 2017.
Southeast Asia's second-largest economy likely grew almost 4 percent in 2017, Deputy Prime Minister Somkid Jatusripitak said on Wednesday, accelerating from 3.2 percent in 2016. For 2018, the state planning agency predicts the trade-reliant economy will expand 3.6-4.6 percent. But exporters have said a strong baht is affecting trade competitiveness and urged the central bank to take action.