A Ray of Hope Regarding Exchange Rates

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Baht Weakens Against US dollar in Morning Trading Session

 

BANGKOK, March 26 (TNA)

 

The baht has weakened further and hovered around 34.98-35 to the US dollar in Monday morning trading session in the same direction with other major world currencies but the greenback.

 

Last week, the baht had appreciated sharply and hit a new nine-year high of 34.65 to the US dollar.

 

A money analyst said the US dollar had appreciated against other global currencies including the baht since a figure on second-hand home sales in the United States released for February was higher than expected.

 

At the same time, there were rumours in the local market that the Bank of Thailand planned to seek cooperation from commercial banks to oversee money trading transactions to ensure the baht is not too strong.

 

The analyst projected the baht would not rise to hit a new high this week if it turned to strengthen again this week.

 

(TNA)

[Guest BKKvisitor]

When I planned my 2006-2007 trips to Thailand, I built-in a 10 percent cost increase from the previous year to cover the appreciating baht and increasing hotel rates. I'm doing the same for the 2007-2008 high season. I'll probably spend 25-30 percent less time overall in the LOS, particularly if my "10 percent solution" doesn't prove adequate.

 

While more hotels are coming on line this year in the major tourist areas (outside of the south), travel to these destinations from northern Asian countries (China, Korea and Japan) is expected to keep vacancy rates low.

 

The only factors that could upset the Thai juggernaut is a disease outbreak, violent political strife (in tourist areas) and runaway baht appreciation. At the moment, i fear the political situation most.

 

FROM THE ASIA TIMES:

 

Mounting political and social instability greatly weakened domestic demand in Thailand during 2006, and a series of policy miscues ensures that stocks, bonds and the Thai currency, the baht, are likely to fall as flight of domestic and foreign capital accelerates in the months ahead.

 

http://www.atimes.com/atimes/Southeast_Asia/IC27Ae02.html