reader Posted July 16, 2023 Posted July 16, 2023 From Pattaya Mail By Barry Kenyon In a wave of enthusiasm not sensed since pre-Brexit days, the British pound is now worth just over 45 baht, an improvement of 4.34 percent since the beginning of the year. The UK currency is also at a 15 month high against the US dollar, having successfully tested the 1.31 US$ bar. By most criteria, the pound is the star-performing international champion of the year so far against a basket of currencies. What’s propping up the pound are the UK’s elevated interest rates, created by stubborn inflation rates – the headline figure is 8.7 percent – which in turn are fuelled by the increased prices of imported goods. Meanwhile, inflation has been falling in the United States so that interest rates there are no longer attractive to hot-money inflows looking to make a quick profit. Expectations that the Fed will continue the hiking of American interest rates have faded. Meanwhile, the Thai baht is suffering from the failure of the 8-party coalition, led by the Move Forward Party, to take political power in Thailand with ongoing threat of prolonged civil strife. Additionally, Thai exports have been dropping in the past few months as part of a slowdown in the economy as a whole. At present, the Thai economy is rudderless as the military-backed government of general Prayut-chan-o-cha has been in caretaker mode since the general election of May 14. Quote
Ruthrieston Posted July 17, 2023 Posted July 17, 2023 It is an improvement, but still nothing like it was before the insane vote to leave the European Union. The day before that stupid vote I got 56 Baht to the pound, and the day after the rate fell to 36 Baht to the pound. That has really hurt my income for these years. PeterRS and traveller123 2 Quote
PeterRS Posted July 17, 2023 Posted July 17, 2023 Oh for the halcyon days following the start of the Asian Economic Crisis! In January 1998 sterling hit 86.034. As I was starting to think of purchasing my apartment around 18 months later, equally as good was the baht interest rate I got of 20% over one year followed by 16% for part of the next. By May 1999 sterling had fallen to its lowest level 59.942 before starting to climb and reaching 75.264 in February 2005. It then slowly began to fall again. As @Ruthrieston points out, there was a peak of around 56 in May 2014 and then again in May 2015. Since then like Humpty Dumpty it has been crashing, albeit more slowly than that revered children's character. However, with the British economy in its present dire straits and a General Election due next year which will finally see the Conservative Party thrown out of power and the indecision this will cause - if only temporarily - I cannot believe the rate of 45 will hold much longer. But then my economic forecasts seem always to be wrong! 😵 https://tradingeconomics.com/united-kingdom/currency Ruthrieston 1 Quote
PeterRS Posted July 18, 2023 Posted July 18, 2023 Oops, someone read my post LOL. Sterling just dropped under 45! Quote
Londoner Posted July 20, 2023 Posted July 20, 2023 Two days drop in succession....just at the wrong time for me! Quote
Keithambrose Posted July 20, 2023 Posted July 20, 2023 Luckily, bought mine while it was over 45! Odd to go down suddenly, when political situation here pretty tense. Quote
