Baht fluctuates amid speculation by foreign investors

[webfact]

Baht fluctuates amid speculation by foreign investors

By THE NATION

 

 

The baht opened at 31.16 to the US dollar on Thursday morning (June 18), strengthening from its previous close of 31.23.

 

The Thai currency is expected to move between 31.05 and 31.25, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.

 

The US stock market on Wednesday night fell by 0.4 per cent, after it had increased for three consecutive days, while Euro Stoxx 600 recovered by 0.7 per cent, after Jens Weidmann, the Deutsche Bundesbank president, revealed European Central Bank policies to purchase risk assets.

 

His statement lifted the German Ten-Year Treasury to -0.39 per cent, and the US Treasury dropped by 0.72 per cent.

 

The strategist said that the central banks of Taiwan and Indonesia were expected to reduce their interest policy rate from 1.0 per cent and 4.25 per cent, respectively. Moreover, the Bank of England would increase its asset buying by 100 billion pounds, and keep the interest rate at 0.1 per cent.

 

In the financial market, the dollar fell by 0.3 per cent, compared to other main currencies, while the yen and franc were strengthened as safe haven assets.

 

The baht has been fluctuating more, due to speculation by foreign investors and selling by importers. However, the strategist said that the baht could trade at a more weakened rate like before the coronavirus spread.

 

Source: https://www.nationthailand.com/news/30389835

 

-- © Copyright The Nation Thailand 2020-06-18

 

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[RichardColeman]

10 minutes ago, webfact said:

previous close of 31.23.

 

The Thai currency is expected to move between 31.05 and 31.25, said Jitipol Puksamatanan, head of Markets Strategy at SCB Securities.

Gotta love a strategist that predicts it could go either up or down

[NumbNut]

6 minutes ago, RichardColeman said:

Gotta love a strategist that predicts it could go either up or down

Best job in the world... how can you be wrong?

[CNXexpat]

4 minutes ago, NumbNut said:

Best job in the world... how can you be wrong?

It could stay where it is, then he is wrong ????

[MasterBaker]

Dirty Farangs strike again

[CorpusChristie]

3 minutes ago, MasterBaker said:

Dirty Farangs strike again

How does that fit into this story ?

[Isaan sailor]

Easy for them to speculate.  10-year average USD/Baht: 32.40.  Fair to say Baht at today’s exchange rate will not bode well for exporters, western tourism or expats.  Thailand clearly the most expensive country in SE Asia.

[Traubert]

7 minutes ago, Isaan sailor said:

Easy for them to speculate.  10-year average USD/Baht: 32.40.  Fair to say Baht at today’s exchange rate will not bode well for exporters, western tourism or expats.  Thailand clearly the most expensive country in SE Asia.

Except Singapore, Malaysia, Chinese Hong Kong, Japan and S Korea.

[Isaan sailor]

2 minutes ago, Traubert said:

Except Singapore, Malaysia, Chinese Hong Kong, Japan and S Korea.

Singapore a city-state.  Would be like comparing Bangkok prices to upcountry prices.  And last time I checked on my globe- Hong Kong (another city/state) and South Korea and Japan are not located in SE Asia.  But you don’t need a globe—just use google maps...

[fulhamster]

8 hours ago, RichardColeman said:

Gotta love a strategist that predicts it could go either up or down

But you need to worry when he already knows how high or low it could go.

[hotchilli]

18 hours ago, webfact said:

However, the strategist said that the baht could trade at a more weakened rate like before the coronavirus spread.

Lol

[Sydebolle]

Baht fluctuates until it will flatulent - good luck!  

[OJAS]

On 6/18/2020 at 11:32 AM, webfact said:

while the yen and franc were strengthened as safe haven assets.

The baht also appears to be a safe haven asset these days.

[Trillian]

19 hours ago, Isaan sailor said:

Easy for them to speculate.  10-year average USD/Baht: 32.40.  Fair to say Baht at today’s exchange rate will not bode well for exporters, western tourism or expats.  Thailand clearly the most expensive country in SE Asia.

A 10 year average exchange rate is meaningless, trend and value are best defined by the MA200 day which is currently even higher at 32.59. Most worrying is the future trend is towards 29.3 - 30.0

 

https://www.tradingview.com/chart/USDTHB/vlzWk300-USDTHB-Long-term-Sell-Signal/

Edited June 19, 2020 by Trillian

[Isaan sailor]

41 minutes ago, Trillian said:

A 10 year average exchange rate is meaningless, trend and value are best defined by the MA200 day which is currently even higher at 32.59. Most worrying is the future trend is towards 29.3 - 30.0

 

https://www.tradingview.com/chart/USDTHB/vlzWk300-USDTHB-Long-term-Sell-Signal/

Either way, corporations will not relocate here with a constantly rising Baht.  And exporters will no longer compete on the world markets.  Tourists? Maybe they won’t notice or care—but some will, and make other plans.

investors may see a stable government here—but an unstable currency will take a toll eventually.

[Trillian]

On 6/19/2020 at 3:32 PM, Isaan sailor said:

Either way, corporations will not relocate here with a constantly rising Baht.  And exporters will no longer compete on the world markets.  Tourists? Maybe they won’t notice or care—but some will, and make other plans.

investors may see a stable government here—but an unstable currency will take a toll eventually.

The Baht is not unstable, the USD has swung from 89 to 99 over the space of 18 months, that's what makes the exchange rate fluctuate.