Some Good News? - Thai Baht Slides

[tropo]

I don't know where I should post this, so I suppose General topics will be the best option.

Here's a report about the Thai Baht and other Asian currencies from the Hong Kong Standard today:

Thai baht slides as benchmark rate clipped

Thursday, January 18, 2007

Thailand's baht declined Wednesday as the central bank cut its new benchmark interest rate, seeking to weaken the currency after last year's 16 percent appreciation.

The Bank of Thailand cut the one- day bond purchase rate to 4.75 percent from 4.9 percent. Governor Tarisa Watanagase, who last month imposed restrictions on buying of the country's bonds, said this week she had been considering rate cuts to weaken the currency.

"We've been expecting the baht to weaken, having come to the end of the hiking cycle and moving into a cutting cycle," said David Mann, a foreign- exchange strategist at Standard Chartered Bank in Hong Kong. "The fundamentals are turning less and less favorable for the baht."

The baht dropped 0.2 percent to 36.07 against the dollar in Bangkok.

Other Asian currencies weakened after central banks stepped up measures to curb gains as Japan's yen fell to a 13-month low.

Asian nations' exports may become less competitive relative to those of Japan as the yen weakens against their currencies.

The Philippine central bank Wednesday said it may loosen foreign-exchange rules, after South Korea and Thailand announced measures this month to encourage outflows to limit currency appreciation.

"Asian currencies are following the trend of the yen's slide and the dollar's strength," said Daisuke Uno, of Sumitomo Mitsui Banking. "Some countries are introducing rules to limit gains in their currency. The authorities are concerned about a sharp rise."

The Philippine peso, Asia- Pacific's second-best performer this year, fell 0.3 percent to 48.855.

"The central bank, worrying about the peso's strength, may try to curb volatility by easing rules," said Jun Ikedaof Mizuho Corporate Bank in Manila. "There is still some concern remaining in the market that the central bank will come in at some point."

The Korean won dropped 0.1 percent to 936.90 against the dollar. The won's almost 9 percent rise in 2006 prompted President Roh Moo Hyun to say the government is planning "aggressive" measures to stem the won's gains. The nation will suspend taxes on money made from overseas investment by funds for three years and let businesses and individuals buy more offshore property, the Finance Ministry said Monday.

The Singapore dollar was little changed at S$1.5390 per US dollar. Exports shrank the most in almost five years in December, falling 14.2 percent from a year earlier, the government said.

Malaysia's ringgit was at 3.5015 from 3.5027, while the Indonesian rupiah dropped 0.4 percent to 9,115. The Taiwan dollar fell 0.1 percent to NT$32.792.

BLOOMBERG

[jbowman1993]

Perhaps the Business section?

[LaoPo]

http://newsvote.bbc.co.uk/2/shared/fds/hi/...78/intraday.stm

LaoPo

[Totster]

Topic moved

totster

[topfield]

I don't know where I should post this, so I suppose General topics will be the best option.

Here's a report about the Thai Baht and other Asian currencies from the Hong Kong Standard today:

Thai baht slides as benchmark rate clipped

Thursday, January 18, 2007

Thailand's baht declined Wednesday as the central bank cut its new benchmark interest rate, seeking to weaken the currency after last year's 16 percent appreciation.

The Bank of Thailand cut the one- day bond purchase rate to 4.75 percent from 4.9 percent. Governor Tarisa Watanagase, who last month imposed restrictions on buying of the country's bonds, said this week she had been considering rate cuts to weaken the currency.

"We've been expecting the baht to weaken, having come to the end of the hiking cycle and moving into a cutting cycle," said David Mann, a foreign- exchange strategist at Standard Chartered Bank in Hong Kong. "The fundamentals are turning less and less favorable for the baht."

The baht dropped 0.2 percent to 36.07 against the dollar in Bangkok.

Other Asian currencies weakened after central banks stepped up measures to curb gains as Japan's yen fell to a 13-month low.

Asian nations' exports may become less competitive relative to those of Japan as the yen weakens against their currencies.

The Philippine central bank Wednesday said it may loosen foreign-exchange rules, after South Korea and Thailand announced measures this month to encourage outflows to limit currency appreciation.

"Asian currencies are following the trend of the yen's slide and the dollar's strength," said Daisuke Uno, of Sumitomo Mitsui Banking. "Some countries are introducing rules to limit gains in their currency. The authorities are concerned about a sharp rise."

The Philippine peso, Asia- Pacific's second-best performer this year, fell 0.3 percent to 48.855.

"The central bank, worrying about the peso's strength, may try to curb volatility by easing rules," said Jun Ikedaof Mizuho Corporate Bank in Manila. "There is still some concern remaining in the market that the central bank will come in at some point."

The Korean won dropped 0.1 percent to 936.90 against the dollar. The won's almost 9 percent rise in 2006 prompted President Roh Moo Hyun to say the government is planning "aggressive" measures to stem the won's gains. The nation will suspend taxes on money made from overseas investment by funds for three years and let businesses and individuals buy more offshore property, the Finance Ministry said Monday.

The Singapore dollar was little changed at S$1.5390 per US dollar. Exports shrank the most in almost five years in December, falling 14.2 percent from a year earlier, the government said.

Malaysia's ringgit was at 3.5015 from 3.5027, while the Indonesian rupiah dropped 0.4 percent to 9,115. The Taiwan dollar fell 0.1 percent to NT$32.792.

BLOOMBERG

Heading bunkum !

Anyone with a bit of business sense would know that a .0125 per cent change in interest rates could never cause the baht to slide ! In fact it rose in New York and as shown in CNBC, Bloomberg and all other websites hit 35.80 to the dollar. Only this morning when the BOT came into the market did the baht return to its BOT "pre-ordained" rate of 36.

[PeaceBlondie]

A slide of 0.2% is so neglible that it's unnoticeable, except to day traders. I took out 25K baht from the ATM at 10 am and the rate was 35.96 to the US$. I want to see 38, not 36.0022.

[markuk]

A slide of 0.2% is so neglible that it's unnoticeable, except to day traders. I took out 25K baht from the ATM at 10 am and the rate was 35.96 to the US$. I want to see 38, not 36.0022.

and i want to see 30 or lower!! dont want it heading back towards 40!!

[tropo]

A slide of 0.2% is so neglible that it's unnoticeable, except to day traders. I took out 25K baht from the ATM at 10 am and the rate was 35.96 to the US$. I want to see 38, not 36.0022.

and i want to see 30 or lower!! dont want it heading back towards 40!!

That's one the reasons why I stuck a question mark after "Good News". Good for some, bad for others.

[britmaveric]

A slide of 0.2% is so neglible that it's unnoticeable, except to day traders. I took out 25K baht from the ATM at 10 am and the rate was 35.96 to the US$. I want to see 38, not 36.0022.

and i want to see 30 or lower!! dont want it heading back towards 40!!

50 would be ideal.

[tropo]

So much for that "good news". I just noticed it's riding very close to 35 again.

[Padkapow Guy]

A slide of 0.2% is so neglible that it's unnoticeable, except to day traders. I took out 25K baht from the ATM at 10 am and the rate was 35.96 to the US$. I want to see 38, not 36.0022.

and i want to see 30 or lower!! dont want it heading back towards 40!!

50 would be ideal.

60 would be even better

There is still time, I won't be back in LOS until feb 08

PKG