BENGALURU: The Thai baht and South Korean won led gains in emerging Asian currencies on Tuesday, as the US dollar retreated from recent highs and Treasury yields eased ahead of key economic data due later in the week.

The US dollar, which is measured against a basket of currencies, weakened 0.2% to 105.361.

The 10-year US Treasury yields also retreated on Monday after briefly rising above 5.0%, hitting the July 2007 milestone on expectations that the US Federal Reserve will not be lowering interest rates anytime soon.

The Thai baht was the top gainer among emerging market currencies, rising 1.1% and hovering near its highest level since Sept. 25.

Thailand’s currency has been one of the worst performers in 2023 and has fallen 4.5% this year, but it has gained 0.7% in October.

Thailand’s exports jumped unexpectedly in September, data from the country’s commerce ministry showed on Tuesday, despite weak global demand.

“The strength in exports, coupled with continued weak imports, should help Thailand register a current account surplus in September despite weak tourist arrival numbers,” Barclays analysts said in a note.

Barclays analysts, however, continue to see tourist arrivals to Thailand increasing through the fourth quarter, especially post the recent visa waiver for arrivals from China.

Stocks in Bangkok, however, fell 0.4%.

Analysts also see risks for the markets from corporate earnings, with a slew of economic data and corporate earnings scheduled from the US and other regions over the week.

“$15 trillion of corporate America’s largest 500 companies release earnings this week – so there is a risk they could disappoint,” said Jessica Amir, markets strategist at Moomoo trading platform.

Meanwhile, the South Korean won advanced 0.8%, touching its highest since Oct. 12. South Korea’s key policy rate is at a near 15-year high of 3.5%, with the central bank last week standing pat for the sixth meeting.