Baht weakens as global markets slide

By THE NATION

 

 

The baht on Friday (March 12) opened at Bt31.85 to the US dollar, weakening from Thursday’s close of Bt31.57, and was likely to move at between Bt31.80 to Bt32.00 per US dollar, SCB Securities senior market strategist Jitipol Puksamatanan said.

 

“The baht on Friday would weaken in line with the dollar,” he added.

 

“The market estimated that the Fed would stimulate liquidity in the system. Investors, meanwhile, must monitor the financial policy in Asia in terms of confidence towards investors.”

 

On Thursday night, the S&P 500 index fell by 9.5 per cent, while the 10-year Treasury contracted to 0.8 per cent. Besides, the WTI crude oil price reduced to $30.90 per barrel, and gold price dropped to $1,575 per ounce.

 

Brazil’s IBOVESPA financial market crashed by 20 per cent, and they have had to pull the circuit breaker four days this week. Also, the Brazilian currency real weakened by 5 per cent in one day, after the country’s president was infected by Covid-19.

 

Meanwhile, the European Central Bank has maintained the interest rate at minus 0.5 per cent. The bank chose to grant a loan through targeted longer-term refinancing operations to European entrepreneurs, at the interest rate of minus 0.25 per cent. The bank also has bought more assets worth €120 billion.

 

Source: https://www.nationthailand.com/news/30383994

 

-- © Copyright The Nation Thailand 2020-03-13

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CRASH BAHAT CRASH.????

It WOULD be GREAT News,IF The other Currencies were NOT Doing the Same......

EUR/THB is not too exciting.

It recently broke the 36 barrier easily (and I decided to wait with transfer).

Today struggling around 35.7.

At the moment in relation to the pound it is 39.8 on Superrich. If anything the baht has strengthened in the last few days against that currency.

 

Rooster

Just now, Jane Dough said:

At the moment in relation to the pound it is 39.8 on Superrich. If anything the baht has strengthened in the last few days against that currency.

 

Rooster

Don't even mention the Oz dollar .......

11 minutes ago, Jane Dough said:

At the moment in relation to the pound it is 39.8 on Superrich. If anything the baht has strengthened in the last few days against that currency.

 

Rooster

Carney reducing the Bank of England interest rates back to 0.25% hasn't helped any. 

23 minutes ago, Nong Khai Man said:

It WOULD be GREAT News,IF The other Currencies were NOT Doing the Same......

Not if you work here and travel abroad.

2 minutes ago, Dellboy218 said:

Carney reducing the Bank of England interest rates back to 0.25% hasn't helped any. 

Carney has only a few more days to go until he steps down

Currently 13/3/20 17.35 hr XE Money Converter

AU$ 1 = 20.06 Baht

Warmest

Edited March 13, 20206 yr by KaputtAlreadyNa

15 minutes ago, KaputtAlreadyNa said:

Currently 13/3/20 17.35 hr XE Money Converter

AU$ 1 = 20.06 Baht

Warmest

It was 17 one time when I went there I think.

The baht is amazingly robust not good for their manufacturing economy or exports.

Pity they didnt report on the SET who has had its worst day in a LOOOONG time. Down 11% in 1 day.

SOUTHEAST ASIAN STOCK MARKETS
 Change on the day                                
 Market                 Current   Previous close  Pct Move
 Singapore              2678.64   2783.72         -3.77
 Bangkok                1114.91   1249.89         -10.80
 Manila                 5736.27   6353.26         -9.71
 Jakarta                4895.748  5154.105        -5.01
 Kuala Lumpur           1419.43   1443.83         -1.69
 Ho Chi Minh            769.25    811.35          -5.19
                                                  
 Change so far in 2020                            
 Market                 Current   End 2019        Pct Move
 Singapore              2678.64   3222.83         -16.89
 Bangkok                1114.91   1579.84         -29.43
 Manila                 5736.27   7,815.26        -26.60
 Jakarta                4895.748  6,299.54        -22.28
 Kuala Lumpur           1419.43   1588.76         -10.66
 Ho Chi Minh            769.25    960.99          -19.95

1 hour ago, Jane Dough said:

At the moment in relation to the pound it is 39.8 on Superrich. If anything the baht has strengthened in the last few days against that currency.

 

Rooster

The pound fell because of corvid19 fears and brexit. The baht has fallen to the euro and dollar. So its the the GBP that is doing bad. I noticed it too usually 5.5 difference between Eur and GBP in baht now 4.2 or so so its just the GBP. 

2 hours ago, Jane Dough said:

At the moment in relation to the pound it is 39.8 on Superrich. If anything the baht has strengthened in the last few days against that currency.

 

Rooster

 

That's because the GBP fell heavily against the dollar. The baht also weakened against the dollar but not nearly as much.

1 hour ago, robblok said:

The pound fell because of corvid19 fears and brexit. The baht has fallen to the euro and dollar. So its the the GBP that is doing bad. I noticed it too usually 5.5 difference between Eur and GBP in baht now 4.2 or so so its just the GBP. 

 

Brexit has been priced into the markets for some time now. The GBP had risen sharply against the dollar and baht and has now fallen back. Probably reactions to the latest budget and unexpected high BoE rate cut.

Edited March 13, 20206 yr by Baerboxer

Got all excited this a.m. when USD/Baht rose to 32.09.  So quick as a wink, I used TransferWise to get a few thou wired over.

Damned good thing—as the Baht crushed the USD down to 31.83 this afternoon.

Curious how USD always tanks in the afternoon...

Edited March 13, 20206 yr by Isaan sailor

You should all be glad that you not have the Norwegian krone NOK like we norwegians have 

soon not even worth the paper it is printed on ????

 

14 minutes ago, Baerboxer said:

 

Brexit has been priced into the markets for some time now. The GBP had risen sharply against the dollar and baht and has now fallen back. Probably reactions to the latest budget and unexpected high BoE rate cut.

Not what i read in the news talking about corvid19 and brexit. The rate cut was an response to sluggish economy. But yes a rate cut does not help. 

24 minutes ago, Baerboxer said:

 

That's because the GBP fell heavily against the dollar. The baht also weakened against the dollar but not nearly as much.

Yes, I see.

 

Trump for next president has eased in betting markets and you can invest on Liverpool to win the EPL again.

 

Rooster

Mneh, I'll wait for price deflation thanks to the dropping purchasing power during the upcoming great recession of Thailand. Then it'll be comfy. Party like it's the 90's.

Edited March 13, 20206 yr by DrTuner

The fall has just begun ...

I was surprised to see the baht weaken after the fed cut yesterday. Was it because the market already expected the cut or are we expecting the baht to strengthen today when the markets reopen as a reaction to the cut?

 

Any signs of more BoT rate cuts?

On 3/13/2020 at 3:29 PM, engamann said:

You should all be glad that you not have the Norwegian krone NOK like we norwegians have 

soon not even worth the paper it is printed on ????

 

You're the richest country in the world! 

11 minutes ago, Neeranam said:

You're the richest country in the world! 

But beers cost $200

6 hours ago, stament said:

I was surprised to see the baht weaken after the fed cut yesterday. Was it because the market already expected the cut or are we expecting the baht to strengthen today when the markets reopen as a reaction to the cut?

 

Any signs of more BoT rate cuts?

Trying to figure out the reasons for small adjustments by a pair in intraday trading is almost impossible to understand, largely a waste of time and will drive you crazy. If you look at the dollar index you'll see USD moved one full percentage point down and then back again after the rate cut was announced! Some of it is dealer reaction, some of it is lag time, some of it decision making time etc etc.

 

https://www.investing.com/currencies/us-dollar-index

 

I think you should be focusing on fundamentals such as economic announcements and trend for as far back as you can see. A 200 day MA confirms trend for me but you'll probably have to settle for the timeframe beginning with the serious news on the virus, that would mean 90 day MA at most right now.

 

There is a possibility of another rate cut but there's also a problem that 0.50% is legally the lowest BOT is allowed to go, they may not be able to go to zero.

 

 

MA?

8 minutes ago, stament said:

MA?

Moving Average.

GBP/USD almost at 1.20, scary stuff.

 

GBP/THB should open around 38.50 via banks.

21 minutes ago, saengd said:

GBP/USD almost at 1.20, scary stuff.

 

GBP/THB should open around 38.50 via banks.

???? If only the baht would weaken faster....

 

Are you expecting further downward weakening of the baht Vs USD?