Worries rise as baht scales six-year high

By The Nation

 

 

The baht continued its upward trend, appreciating to Bt30.42 to the US dollar on Friday, up from Bt30.67 the previous Friday, after having risen to a six-year high of Bt30.36 at some time during the day.

 

Regional currencies also moved up against the US dollar as markets expressed relief about the trade war and the European Central Bank (ECB)’s latest monetary easing.

 

The ECB cut its deposit facility rate, paid by banks on reserves parked with the ECB, to deeper negative territory from minus 0.4 per cent to minus 0.5 per cent and resumed bond purchases to encourage banks to lend more.

 

The measures came as Germany, Europe’s largest economy, showed signs of a looming recession. US President Donald Trump delayed tariff hikes on Chinese goods and China also postponed increasing tariffs on US goods.

 

The Kasikorn Research Centre forecast that the baht may move in a range of Bt30.20 and Bt30.60 a dollar next week.

 

 

Investors are awaiting latest developments in the trade war, the developments in Brexit, the meeting of the US Federal Reserve on September 17-18, the meeting of the Bank of Japan and Chinese economic indicators. Investors are also eagerly awaiting key economic indicators in the US, including a survey of industrial activities by the Fed’s New York branch; business trends by the Fed’s Philadelphia branch; the housing index in September; industrial production, second-home sales, housing starts in August and net capital flows in July, the research house added.

 

Exporters, economists and overseas Thai workers have long complained about the appreciating baht damaging exports, farm products and causing exchange losses for overseas Thai workers, adversely impacting the overall economy. Thai investors who invested in foreign equities were also facing exchange rate losses when repatriating money due to the rising baht.

 

Source: https://www.nationthailand.com/business/30376190

 

-- © Copyright The Nation Thailand 2019-09-15

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1 hour ago, rooster59 said:

Worries rise as baht scales six-year high

More gloom on the way.

"......Jitipol Puksamatanan, Bangkok-based chief strategist at Krung Thai Bank Pcl. The third most-accurate forecaster for the currency last quarter predicts the baht will rise to 30.25 per dollar by the end of the year".

Another kick in the teeth for exports and still PM Prayut says nothing, his silence is deafening which is a worry.

One would expect him to say something since he recently appointed himself to the Chairmanship of the Council of Economic Ministers. Surely that makes him the official spokesperson. One can only conclude he is unsure of himself and doesn't know what to say.

Prayutnomics, it appears, is not working. Except perhaps that the 20 Year plan will ensure the rich will be richer and the poor will be poorer.

https://fortune.com/2019/08/06/thai-baht-currency-war-trade/

Edited September 15, 20196 yr by Cadbury

7 minutes ago, Cadbury said:

 

More gloom on the way.

"......Jitipol Puksamatanan, Bangkok-based chief strategist at Krung Thai Bank Pcl. The third most-accurate forecaster for the currency last quarter predicts the baht will rise to 30.25 per dollar by the end of the year".

Another kick in the teeth for exports and still PM Prayut says nothing, his silence is deafening which is a worry.

One would expect him to say something since he recently appointed himself to the Chairmanship of the Council of Economic Ministers. Surely that makes him the official spokesperson. One can only conclude he is unsure of himself and doesn't know what to say.

Prayutnomics, it appears, is not working. Except perhaps that the 20 Year plan will ensure the rich will be richer and the poor will be poorer.

https://fortune.com/2019/08/06/thai-baht-currency-war-trade/

what me worry? check out my new glasses

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

10 minutes ago, Xonax said:

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

On a macro scale that makes sense, on a micro capitialist scale it doesnt.

 

Damn I want some Pringles!

25 minutes ago, Nyezhov said:

On a macro scale that makes sense, on a micro capitialist scale it doesnt.

 

Damn I want some Pringles!

Cancer in a Can , Good idea

48 minutes ago, Xonax said:

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

Heh, heh, heh. That said, Australian cheese was on sale in Tops yesterday!

Edited September 15, 20196 yr by zydeco

5 minutes ago, zydeco said:

Heh, heh, heh. That said, Australian cheese was on sale in Tops yesterday!

Australian cheese should be free., anyway the Tesco granola I have been buying has recently more than doubled in price.

19 minutes ago, Nice Boyd said:

Cancer in a Can , Good idea

Of all the things I know I can get the Big C from, Pringles are on the bottom of the list.

52 minutes ago, Xonax said:

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

Imported goods should automatically become cheaper because of the baht. Lower for the importer that is.

And that's where it stops and doesn't get passed on; or if it does get passed on to the wholesaler it is unlikely to get any further than that. Certainly not to the consumer. It's called greed.

If there was such a thing as a Perceived Greed Index Thailand would be at the top.

11 minutes ago, zydeco said:

Heh, heh, heh. That said, Australian cheese was on sale in Tops yesterday!

What cheese was that then? I have to go to Tops to stock up on my fav coffee.

Just now, Cadbury said:

If there was such a thing as a Perceived Greed Index Thailand would be at the top.

Dude that is simply such a dumb statement. You think that only the Thais are greedy? Ever been to France? Or Mexico?

1 minute ago, Nyezhov said:

Dude that is simply such a dumb statement. You think that only the Thais are greedy? Ever been to France? Or Mexico?

No I just go by what the experts write here, particularly about the tourism industry.

So where would you rate Thailand? Just so I get a truer perspective.

They are all so worried and to tackle the problem they have come with some bright ideas.

 

to tackle decline in tourism, introducing higher taxes and official dual pricing 

 

to tackle export slump , as I recently experienced exporters would not move an inch to attract new buyers .

 

As usual great thinking and planning, let’s see how it all plans out and if Teflon Thailand will stay Teflon or burn itself out 

1 hour ago, Xonax said:

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

The stores are fleecing us.

 

We need to rebel...get out the placards. "Vegemite Vendetta"  "Weetbix War" "HP till I die!"

Stand up and be counted!!

 

Rooster

5 minutes ago, Cadbury said:

No I just go by what the experts write here, particularly about the tourism industry.

So where would you rate Thailand? Just so I get a truer perspective.

Experts? Here? Bwahahahahahahahahahahahahahahahahahahahahahahaahha.

 

Pardon me I just vomited some donuts on myself.

 

Rate Thailand in terms of ripoffness in tourist areas? Same as Florida, better that Las Vegas, same as any tourist place in Mexico, better than France or NYC.....

 

Y'all need to get out more.

21 minutes ago, Nyezhov said:

What cheese was that then? I have to go to Tops to stock up on my fav coffee.

Mainland Tasty. It's better than the English stuff, actually. It was 195 baht. Usually, it's 210. . . . But wish I could get some Velveeta for jalapeno cheese dip. Oops. Just checked the package. It's New Zealand, not Australian.

Edited September 15, 20196 yr by zydeco

Weirdly though the GBP has risen above 38 baht on Transferwise for the first time since July. 

1 hour ago, Xonax said:

Am I the only one wondering, why non of the extremely expensive imported grocery products, that most of us foreigners buy, are not becoming cheaper in the stores, when they are becoming so much cheaper to purchase?

Yeah should be cheaper obviously retailers not passing on the saving. So it’s simple if you think it’s too expensive don’t buy it, eventually the price will go down if they want to sell it. While ever you’ll pay top dollar they will charge top dollar. ????

10 minutes ago, zydeco said:

Mainland Tasty. It's better than the English stuff, actually. It was 195 baht. Usually, it's 210. . . . But wish I could get some Velveeta for jalapeno cheese dip. Oops. Just checked the package. It's New Zealand, not Australian.

The Mainland cheese from NZ has to be one of the best around, esp the Vintage one, or sometimes buy the Tasty for a change.

 

The imported goods should come down in price given the strong baht, and have seen some wines being re-priced.........just right to go with the cheese!

21 minutes ago, zydeco said:

Mainland Tasty. It's better than the English stuff, actually. It was 195 baht. Usually, it's 210. . . . But wish I could get some Velveeta for jalapeno cheese dip. Oops. Just checked the package. It's New Zealand, not Australian.

Go to Makro, they have 2 Mainland cheeses in 500g packs for 249baht. Not a sale price, day to day price. Unfortunately, they are not yet producing their Epicure cheese in that size.

4 minutes ago, xylophone said:

The Mainland cheese from NZ has to be one of the best around, esp the Vintage one, or sometimes buy the Tasty for a change.

I enjoy the same taste in Cheese.

13 minutes ago, Garybaldy said:

So it’s simple if you think it’s too expensive don’t buy it, eventually the price will go down if they want to sell it

No they won't , they will just stop selling it . They will think nobody wants it.

 

23 minutes ago, Dmaxdan said:

Weirdly though the GBP has risen above 38 baht on Transferwise for the first time since July. 

 

Not really weird.

The $ price is based partly on the Trump factor, whilst the £ rises and falls based on Brexit news.

8 minutes ago, stereolab said:

Go to Makro, they have 2 Mainland cheeses in 500g packs for 249baht. Not a sale price, day to day price. Unfortunately, they are not yet producing their Epicure cheese in that size.

Worth the trip, then, just for the cheese. The blocks at Tops are just 250 g.

2 hours ago, Cadbury said:

Another kick in the teeth for exports and still PM Prayut says nothing, his silence is deafening which is a worry.

"Baht strong like Army. Strong good. Weak bad."

1 minute ago, NCC1701A said:

"Baht strong like Army. Strong good. Weak bad."

Why should he be worried , he just scored a few LV scarfs at least 30% cheaper than before ????

I get Fredo brand Feta and Gouda cheese in Makro for way less than any Mainland cheese.   Can't see why I should pay more for Mainland. What's most troubling is the lack of variety of salami at Phitsanulok and the one brand they have is...eatable if not fully enjoyable...but that's better than Phichit which has no salami at all! But I suspect my food choice problems have little to do with the value of the baht and more to do with Makro store policy. Ps: While I am bitching about food,  the only place you can get a decent pork sausage is Yorkie's in Jomtien...600kms from here!  My life sucks.  ????

9 minutes ago, prakhonchai nick said:

 

Not really weird.

The $ price is based partly on the Trump factor, whilst the £ rises and falls based on Brexit news.

And so according to your theory does it follow that the baht continues to rise based on the Prayut Chan-o-cha factor?

This is a rhetorical question.

2 hours ago, Cadbury said:

https://fortune.com/2019/08/06/thai-baht-currency-war-trade/

"Unlike Taiwan and South Korea, which run current-account surpluses as well, Thailand is not in the direct line of fire in terms of the supply-chain impact of the global trade wars, said Sim Moh Siong, currency strategist at Bank of Singapore Ltd."

 

so Thailand is like a bar girl who already has a house and a car that is paid for in Surin.

All this and a fake PhD? Hehe