Thailand’s baht rose on Tuesday on hopes that the tourism-reliant country waives quarantine for vaccinated visitors again, while its emerging market peers gained on a US dollar unperturbed by a rise in Treasury yields.
Treasuries rose along the curve during Asia hours, with two-year yields, which track short-term rate expectations, crossing 1% for the first time since Feb 2020, as investors brace for a more hawkish US Federal Reserve.
Emerging Asian stock markets were mostly higher, though barring China and the Philippines, gains were largely capped to below half a percent.
Investors are eyeing the Fed’s Jan 25-26 meeting following a chorus of hawkish statements by officials in recent weeks. While markets do not expect an interest rate hike next week, bets are growing that the central bank will start tightening in March.
In Thailand, the government is…
