Dollar Continues to Weaken Against the Baht - Latest Information

[Gaybutton]

As of the moment of this post, the US dollar to baht exchange rate has slipped to 37.22. Two years ago, if you exchanged US $1000, you would have received about 45,000 baht. Today, in comparison you will receive 37,220, a difference of 7780 baht. That's a loss of nearly US $200 per thousand. Taking inflation into consideration, it's even more of a loss.

 

This has been very much in the news lately. Here is the latest information:

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FTI to Seek Baht Intervention to Ensure Smooth Business Operation

 

BANGKOK, Aug 10 (TNA)

 

The Federation of Thai Industries (FTI) plans to call on the government to supervise the movement of the Thai baht to ensure that it stays steadily in a range of 38-39 a US dollar so that entrepreneurs will be able to do their businesses smoothly.

 

FTI

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BANGKOK, Aug 11 (TNA)

 

The Thai baht is likely to further strengthen and touch 37 a US dollar by the third quarter of this year due to a foreign capital inflow into the country, according to a senior economist.

 

Usara Vilaipich of Standard Chartered Bank, said on Thursday foreign capital had continued to flow into Thailand, particularly in the Stock Exchange of Thailand (SET) and the bond market.

 

The capital inflow, if continues unabated, would probably make the local currency appreciate to 37 a US dollar by the end of September.

 

She said the strengthening of the Thai baht would benefit importers and exporters.

 

For instance, importers will enjoy lower costs in importing of products, particularly fuel whose prices have continued to rise.

 

The appreciation of the Thai currency will help ease impacts of the inflation rate hike upon higher fuel prices.

 

Local exporters will benefit from lower costs of importing raw materials and machinery, which represent up to 40 per cent of production costs, if the baht strengthens, she said.

 

(TNA)

[Guest wowpow]

The US Dollar - Thai Baht over 5 years

 

 

Yahoo Finance

[khaolakguy]

These exchange rates are more a symbol of the weakness of the dollar, than the strength of the baht. Over the same period as the graph, for example, sterling has appreciated against the baht by 10%.

[Gaybutton]

Here's the latest. The following article appears in THE NATION:

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EXCHANGE RATE

 

Baht Hits a 6-year High Against $

 

Reaches Bt37.27 as Greenback Weakens

 

The baht rose to a six-year high of Bt37.27 against the dollar yesterday despite Bank of Thailand intervention.

 

The rise was mainly caused by a weakening greenback after the US Federal Reserve earlier this week left a key interest rate unchanged for the first time in two years.

 

Dealers expect the baht to shoot up to Bt36.50 by year-end.

 

The baht opened at Bt37.46 to Bt37.50 per dollar yesterday before hitting a peak during intra-day trading at Bt37.27, its highest level since 2000. The currency closed at Bt37.36 to Bt37.39.

 

Central bank assistant governor Nitaya Pibulratanagit said there was more than US$100 million (Bt3.74 billion) of short and long-term capital inflow yesterday.

 

She said, however, the bank had yet to verify the objective of these funds and that it would continue to "oversee" the unit in the currency markets.

 

"The BOT has overseen the baht in the foreign exchange market as needed. Otherwise, it would be much stronger than this," said Nitaya.

 

The baht was relatively stronger than other regional currencies yesterday.

 

Nitaya said, however, that the foiled terrorist plot in the United Kingdom had not affected the pound, which weakened slightly.

 

There was not much capital inflow to the United States either as investors were still concerned about terrorist attacks.

 

But Nitaya believes that once the euro and yen become weaker and the US dollar stronger in the near future, the baht will finally weaken.

 

Songpol Chevapanyaroj, head of the treasury products marketing department at Kasikornbank, said the baht had risen in line with the regional currencies against the US dollar.

 

The baht is expected to be stronger but it is likely to swing from profit-taking from investors, he said.

 

The unit will be about Bt37.20 to Bt37.80 against the dollar next week, while it may climb to Bt36.50 by the end of the year, he said.

 

Bank of Ayudhya executive vice president Tak Bunnag said the baht had also been supported by heavy trading volume yesterday, which partly came from the selling of the greenback by exporters.

 

Besides, foreign investors made a net-buy position in the country's stock market, pushing the baht to become stronger, he said.

 

"Once the country's political situation is clearer, overseas investors will have higher confidence," he said.

 

He said he believed that central bank intervention had weakened the baht slightly before the market closed, but that it would strengthen further when trading resumed.

 

Anoma Srisukkasem,

 

Somruedi Banchongduang

 

The Nation

 

[Gaybutton]

Thai Baht May Further Strengthen this Week

 

BANGKOK, Aug 13 (TNA)

 

The Thai baht may continue rallying against the US dollar this week after rising to a six-and-a-half-year high of Bt37.28 late last week, according to a report issued by the KASIKORN Research Center (KRC).

 

The Thai currency may pass through a long-standing psychologicl barrier of Bt37.00 a US dollar this week.

 

Last week the Thai baht stayed at Bt37.43 a US dollar on average, compared with Bt37.85 on average the week before.

 

A key factor behind the sharp rise of the baht last week was a decision by the US Federal Reserve not to hike its interest rate, the first time in more than two years.

 

Also, remarks by Bank of Thailand (BOT) Governor M.R. Pridiyathorn Devakula on capital inflows and the central bank's mapping out measures to cope with the situation make currency traders believe that the Thai baht may continue to strengthen this week.

 

This week, the Thai currency is anticipated to move within the range of Bt37.00-37.60 a US dollar as traders are monitoring several key US economic reports, including the inflation rate and industrial production in July, according to the KRC report.

 

However, the expected strengthening of the Thai baht may be limited due to worries over a possible intervention of the BOT, especially if the Thai currency moves near the strong psychological level at Bt37.00 a US dollar, the report added.

 

(TNA) E111, E002

 

 

 

[Guest wowpow]

An Accountant told me that it's wise to keep half your assets at home and half in Thailand. Then when currency moves it balances out.

 

So now when the dollar sinks you assets in Thailand rise in dollar value.

 

If you are on a fixed pension things are bleak.

[Gaybutton]

Baht Slightly too Strong, says BOT

 

BANGKOK, Aug 15 (TNA)

 

Bank of Thailand

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BOT Continuing to Intervene in Baht Movement

 

BANGKOK, Aug 17 (TNA)

 

Bank of Thailand (BOT)

[Guest wowpow]

The Nation: Experts see baht at 35.50 per dollar

 

The Thai baht is expected to strengthen further - even test the Bt35.50 resistance level against the US dollar - because the Bank of Thailand (BOT) is unlikely to buck the global currency trend and seeks only to ensure that the baht's adjustment to the dollar's depreciation is consistent with other Asian currencies, experts said yesterday.

 

Robin Wilkin, a JP Morgan Chase technical strategist in London, was quoted by Reuters as saying the baht could potentially rise a further 5-6 per cent against the US dollar before meeting resistance on the charts.

 

He said he expected a move towards between Bt36.50 and Bt35.50, representing the baht's strongest point since 1998-99. After breaking through the Bt37.44 level last week, the baht should be stronger and the US dollar's bearish position confirmed.

 

Meanwhile, DBS Group Research said recent intervention by the Thai central bank did not mean the BOT wanted to dictate the baht level against the US dollar.

 

"What the BOT wants is to ensure that the US dollar's downward adjustment is consistent among the baht's Asian peers," it said. This explains why the US-dollar/baht rate has been tracking the US-dollar/Singaporean-dollar rate, with a 91.7-per-cent correlation, more closely than the US-dollar/yen rate, showing only a 40.2-per-cent correlation.

 

"In other words, the BOT may just be complaining about the divergence between the US dollar/baht [rate] and the US-dollar/Singaporean-dollar [rate]," said DBS.

 

The baht closed yesterday in Asian trading at Bt37.58 to the US dollar, after reaching a six-year high on Friday.

[Guest letmetellu]

The Nation: Experts see baht at 35.50 per dollar

 

The Thai baht is expected to strengthen further - even test the Bt35.50 resistance level against the US dollar - because the Bank of Thailand (BOT) is unlikely to buck the global currency trend and seeks only to ensure that the baht's adjustment to the dollar's depreciation is consistent with other Asian currencies, experts said yesterday.

 

Robin Wilkin, a JP Morgan Chase technical strategist in London, was quoted by Reuters as saying the baht could potentially rise a further 5-6 per cent against the US dollar before meeting resistance on the charts.

 

He said he expected a move towards between Bt36.50 and Bt35.50, representing the baht's strongest point since 1998-99. After breaking through the Bt37.44 level last week, the baht should be stronger and the US dollar's bearish position confirmed.

 

Meanwhile, DBS Group Research said recent intervention by the Thai central bank did not mean the BOT wanted to dictate the baht level against the US dollar.

 

"What the BOT wants is to ensure that the US dollar's downward adjustment is consistent among the baht's Asian peers," it said. This explains why the US-dollar/baht rate has been tracking the US-dollar/Singaporean-dollar rate, with a 91.7-per-cent correlation, more closely than the US-dollar/yen rate, showing only a 40.2-per-cent correlation.

 

"In other words, the BOT may just be complaining about the divergence between the US dollar/baht [rate] and the US-dollar/Singaporean-dollar [rate]," said DBS.

 

The baht closed yesterday in Asian trading at Bt37.58 to the US dollar, after reaching a six-year high on Friday.

 

 

Wow is this the battle of the cut & pasters now who is going to win this, you can bet things will look wonderful as far as the USA and Thailand are concerned, all these puppets around the world or is it poodles, or is it sycophants.

[Gaybutton]

Wow is this the battle of the cut & pasters now who is going to win this, you can bet things will look wonderful as far as the USA and Thailand are concerned, all these puppets around the world or is it poodles, or is it sycophants.

 

Where are you getting the idea that this is some sort of "battle of the cut and pasters?" I paste in news items that I think are of interest to readers of this forum and I specify the source of the news item. I see no reason to re-write, in my own words, news items that are already written. While I realize that the news items I post are just as readily available to others as they are to me, not everybody wants to take the time to wade through the Internet to find these items. So, I do that as a convenience to those who are interested. Is there a problem with that?

[Guest wowpow]

LMTU always welcome, amusing, confusing, informative and controversial, now joining the 'refugees' on this board. I am just wondering if all the Europeans ( I am tempted to say "and the Brits" ) are rushing to shop in the US as everything is so cheap for us there. That could explain why the gay tourist numbers seem to be very low this low season.

 

It will come as no surprise to anyone that I think like GB when it comes to cutting and pasting. We both add our own comments as and when.

[Bob]

Not sure what your point is, LTMU, but you're free to leave if you don't like it. I appreciate the articles because, even though I do read some of the same newspapers, I often don't key in on some of the topics that GB highlights.

You're certainly free to ignore anybody's postings. Hell, I've gotten used to exercising that right as have many others.

 

 

[Gaybutton]

Baht Expected to Remain Strong this Week

 

BANGKOK, Aug 20 (TNA)

 

The Thai baht is anticipated to move within the range of Bt37.10 to Bt37.60 against the US dollar this week compared with Bt37.34 per dollar during late trade on Friday, according to a report issued by the Kasikorn Research Centre.

 

The report said the baht could strengthen this week due to the lack of positive factors to support the US dollar, and that traders are less worried now regarding a further hike in the interest rate by the US

Federal Reserve Bank.

 

Traders are also awaiting new factors to stimulate trade apart from key US economic data--including housing sales and purchase orders for durable goods, it said, adding that the strengthening of the baht

could be limited due to an intervention by the Bank of Thailand (BoT).

 

Several negative factors had hit the strong baht last week, the report said. They included a market intervention by the BoT to keep the baht from being too strong and strong dollar profit-taking by

exporters.

 

The central bank said on Tuesday that it had intervened in the market after finding that the local currency was too strong. The baht edged down late last week, unlike the Japanese yen and other regional currencies which strengthened on the back of US inflation.

 

However, the baht rose later following an interest rate hike by the Chinese central bank which helped pushed up the yen and the local currency.

 

(TNA)-E111