(Bloomberg) -- Thailand’s baht and the South Korean won jumped from the Asian open after the dollar weakened on Wednesday when the Bank of England’s bond purchases boosted risk sentiment.
The baht advanced as much as 1.5% to 37.697 per dollar, its biggest rally in nearly a year, before paring gain to be 0.7% stronger on the day. Korea’s currency climbed as much as 1.1% to 1,425.00, its steepest advance in about two months.
Both of the currencies had slumped to multi-year lows on Wednesday as emerging-market assets were roiled by concern aggressive tightening by the Federal Reserve will lead to a global recession.
“The BOE’s intervention is being priced in, which comes on top of South Korean measures to buy bonds yesterday,” said Kim Yumi, a market strategist at Kiwoom Securities in Seoul. “The effect of intervention could last for about a month as a Federal Reserve meeting isn’t scheduled until early November.”
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