why is the baht getting so strong again??

Compared to what?

Now there's an interesting thought and a subject that's yet to be discussed on TVF.

I see a falling Pound which makes the Baht look stronger!

50 minutes ago, tomazbodner said:

Compared to what?

Everything by the looks.

Makes the country look good and strong, as does low COVID figures. 

Sorry, couldn't help it.

Still 40 to the pound on transfer wise ????

Also the EURO took again a hard hit, it's going back down to 33 Baht something. 

THB to USD today is 32.45, on the 1st when I transferred money in from mu US Bank I picked up 33.10 THB per Dollar.  So its down .65 Baht per USD in 23 days.  

Might be something to do with the trillions of dollars/pounds/euros that the west is spending on propping up its populace and economy, something the Thai government has only done quarter-heartedly at most. It might seem like silly financial shenanigans at the moment, but one day all that extra spending will have to be accounted for, and generally speaking it won't be good for the home currencies. We're a long way from that accounting yet, and the extra support may mean that western economies will bounce back faster and better than the Thai one. I'd like to say here that I wouldn't bet on it, but the sad fact is that most of us are going to become quite a bit poorer in future as our governments try to inflate away their colossal C19 debts, cut spending and raise taxes.

The west has been harder hit by covid-19 than Thailand, the economies of the west are also larger than the Thai economy so to use fiscal stimulus they have to make huge amounts of debt far greater than Thailand ever will have to, this on top of many economies already with debt over and above 100% of GDP (Japan 237%, UK 85%  America 106% Italy 134% Greece 174% and so on) Thailands debt to GDP is 44%, very low with large foreign currency reserves so they are in a healthy state at the moment. Having said that the debt of the west will come home to bite as that means fewer tourists from those countries and less consumer demand for Thai products but Thailand will ride high for a few more years.

It's a unexplained far east mystery to me said the amuture F/X trader????

My best guess:  China devalued the Yuan, which is pegged to the USD.  Then other western currencies nosedived, since they have relative values.  And Thai Baht is free-floating—so it rose...

The South Korean stock market is soaring, they never closed down their economy (yet are also down to 10 cases per day), but the Won is still down 10%.

 

The Thai stimulus package is funded through debt and the government has been spending like there is no tomorrow.

 

It seems whatever happens, Thailand and the Baht will come up smelling like roses!

Because Thailand is not spending (printing) money to help its people like other countries

2 hours ago, ThailandRyan said:

THB to USD today is 32.45, on the 1st when I transferred money in from mu US Bank I picked up 33.10 THB per Dollar.  So its down .65 Baht per USD in 23 days.  

I’ve been monitoring the USD since it started improving in January and there’s not really any change it’s been between 32 and 33 baht to the dollar and holding pretty well. 

After a steady rise during month of March, with 1 Euro = 36,24 THB on 28 March, the Euro is sliding down against the bath and presently at 34,93 THB. 

That's an almost 4% loss in 4 weeks.

 

 

Hi... Simple, the Baht is very closely tied to the US Dollar, so when the dollar other currency (Eg. GBP or Euro) strengthens ie Pound or Euro drops against the US Dollar - recently GBP £1 was $1.25 now down to $1.23 the Baht went from 41 to £1, to today's 39.8 Baht to £1... Hope this helps

Edited April 24, 20206 yr by cosmosis
Politenesss/ More precise explanation

The dollar is getting stronger against the baht so that effects the Euro and it’s expected to continue into the next year. 

Simple! Overseas assets cheap as in this current dump. And the boys are buying up big time. To hell with exports and tourism. Let’s strengthen our Balance Sheets, khrap Khun Khrap .

Maybe, because economy worldwide is weak......

4 hours ago, Dario said:

Also the EURO took again a hard hit, it's going back down to 33 Baht something. 

No, its still on 34,5....

Well, the Eurozone economy is a mess. Soon Northern Eurozone countries will need to bail out Southern Eurozone countries like Italy. It's gonna happen, no matter what a politician in a Northern Eurozone country is gonna say, since France and Germany already agreed on the matter.

 

This means that northern Eurozone countries will lose a lot of wealth to pay off depts that southern Eurozone countries can't manage. I am sure that is partially a reason for a weaker Euro. If I were an investor in currencies, I would get out of the Euro and into e.g. US dollar.

 

Dutch readers can check this video: 

 

Deutsche Bank might also need a bailout in the near future (which might be the reason why Merkel is now in favour of Eurobonds, as in the past she opposed it), international readers can check this video:

 

 

Edited April 24, 20206 yr by wolf81

before covid ,i hoped that after Brexit the pound might go to 44 to the pound ,now i fear that was but a dream.

6 minutes ago, bert bloggs said:

the pound might go to 44 to the pound 

Yeah, that might be tricky.

For the USD/Baht, today it sits @ 32.45.  That’s slightly above the 10-year average.

It is because Covid 19 problems are nearly solved in Thailand and everything will be back to normal and day now. ????

On 4/23/2020 at 11:31 AM, rodknock said:

why is the baht getting so strong again??

Not a clue. Been wondering the same for 5 years now.

The Eurozone can't agree on a bailout. The UK chancellor is giving away millions to anyone who complains.

 

Markets haven't yet priced in that it's going to be incredibly hard to restart global travel, so the Baht is riding high for now.

 

Also it will take a few more weeks at least for countries without bailouts to start disintegrating...

On 4/23/2020 at 4:37 PM, tomazbodner said:

Compared to what?

To almost every currency. 

US printing several trillion dollars has definitely weakened the dollar against the baht.  Don't forget, most of that money doesn't go to people, it goes to banks-who invest in foreign assets with all their free money.