The Thai baht edged higher against the dollar on Wednesday after the Bank of Thailand surprised markets with an interest rate rise and said rates would rise further. The baht last stood at 30.02/05 to the dollar, up from around 30.09/14 just ahead of the decision. The Bank of Thailand raised interest rates by a quarter-point to 2 percent on Wednesday, surprising many economists.
The following reports below are from Reuters and IFR Markets. The rupiah gained slightly earlier in the day after Moody's Investors Service placed on review for upgrade the Indonesian government's Ba2 foreign and local-currency bond ratings. The peso opened lower than expected at 44.10 to the dollar, down from Tuesday's close at 44.00. Traders seized the opportunity to sell the dollar at higher levels. Coupled with good selling in the NDFs, funds and interbank speculators sent the dollar lower.