Baht could sink even further, analyst warns

[webfact]

 

By Panithan Onthaworn

 

Thailand’s baht could weaken further after reaching its lowest point since late 2017 level of 33 baht per USD, an analyst at Krungsri Securities said on Wednesday, as the economy is challenged by its most severe Covid-19 outbreak so far.

 

The Thai baht has fallen more than 9 per cent against the USD since the end of 2020, making it one of the world’s worst performers this year.

 

“We see another 3-4 per cent downside risk to the THB depending on the Covid-19 situation and economic and political landscape in the coming quarters,” Isara Ordeedolchest said in a research note.

 

Full story: https://www.thaienquirer.com/30858/baht-could-sink-even-further-analyst-warns/

 

-- © Copyright Thai Enquirer 2021-08-05

 

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[Orinoco]

Yes please. 

 

[Albert Zweistein]

Just the beginning.

[ezzra]

Yeah just my luck to be holding a cr*p loads of them in the bank right now...

[RichardColeman]

Finding it hard to think of a good reason as to why this is not a bad thing

[lodstewart]

50Bt to the pound sterling would be so good then 55Bt ,  back to before brexit great news for all the Brit pensioners

[drenddy]

Oh....Thank you, God, for such a lovely and long awaited warning.

[nightfox]

Don't need to be no analyst to see this was coming...

[RotBenz8888]

RIP Teflon Baht. How Id love that.... ????

[smedly]

1 hour ago, lodstewart said:

50Bt to the pound sterling would be so good then 55Bt ,  back to before brexit great news for all the Brit pensioners

you mean 47

[Scouse123]

I think it might just hit 50 if we are lucky, no more and it won't last.

[tonray]

Burn Baby Burn......

 

Just in time for my car purchase in December... if goes down enough.....maybe even splurge on a condo in Hua Hin....????

[vandeventer]

1 hour ago, drenddy said:

Oh....Thank you, God, for such a lovely and long awaited warning.

Yes, it gives you more money in the bank, but prices will go up on most things. I hope you like rice.

[tonray]

1 minute ago, vandeventer said:

Yes, it gives you more money in the bank, but prices will go up on most things. I hope you like rice.

Prices likely only to rise on imported goods. Anything made in Thailand should not be affected much, especially in a struggling economy with waning demand.

[placeholder]

2 minutes ago, tonray said:

Prices likely only to rise on imported goods. Anything made in Thailand should not be affected much, especially in a struggling economy with waning demand.

Insofar as some of the inputs are derived from foreign sources, prices may rise. But the rise in foreign currencies should more than outweigh that.

[itsari]

Thailand's currency wilts as covid wreaks havoc on tourism . 

Headline from the financial times yesterday .

Worth reading as it gives far more detail than the Thai Inquirer.

Balance of payments shock was one subject raised

[Caldera]

I'd like to see 40 THB per USD. Seems a bit out of reach still, but hey, once on the move things often just steamroll on.

[tonray]

1 minute ago, Caldera said:

I'd like to see 40 THB per USD. Seems a bit out of reach still, but hey, once on the move things often just steamroll on.

It could be further along the way...but the Federal Reserve Bank is still stubbornly clinging to near zero interest rates in spite of inflationary evidence. I fear they do not know any other way than zero % at this point. 

[JimHuaHin]

50 Baht = A$1 would be nice.

[smutcakes]

Normally this would not bother me one bit, but on the same day the deposit protection amount was announced to be reduced from 5 Million THB to 1 Million THB from 11th August, it makes it a little bit annoying.

 

I suppose will have to either just accept the risk, spread THB around to different accounts in different banks, transfer money into stock trading account or transfer money back to home despite a worse exchange rate compared to the last couple of years. Probably do a bit of everything.

[Henryford]

17 minutes ago, Caldera said:

I'd like to see 40 THB per USD. Seems a bit out of reach still, but hey, once on the move things often just steamroll on.

The economic gurus on Youtube are always saying the dollar is about to collapse but no sign of it yet despite the trillions being printed.

[redwood1]

How as they seem determined to destroy all small and medium sized business in Thailand during rona, I think the Baht will be falling much lower and much for longer than anyone here dares to even contemplate.....

[10baht]

Sorry fellows, I would have like to see : Thai govt says no need to panic  baht is not going lower. 

[Chosenfew]

What happens to banks when many Thai’s cannot pay their mortgage and car payments?

[redwood1]

1 minute ago, Henryford said:

The economic gurus on Youtube are always saying the dollar is about to collapse but no sign of it yet despite the trillions being printed.

As long as America is the world's policeman the dollar will not collapse....

[ThaiFelix]

3 hours ago, webfact said:

“We see another 3-4 per cent downside risk to the THB depending on the Covid-19 situation and economic and political landscape in the coming quarters,” Isara Ordeedolchest said in a research note.

Oh so its definite then!

[joloit]

Maybe the donated vaccines will get more expensive for us now ????

[redwood1]

1 minute ago, Chosenfew said:

What happens to banks when many Thai’s cannot pay their mortgage and car payments?

I think the Thai banks have been carrying bad loans for a very loooong time....One day a spectacular day of reckoning will come...

[kg1947]

34 minutes ago, Caldera said:

I'd like to see 40 THB per USD. Seems a bit out of reach still, but hey, once on the move things often just steamroll on.

agreed  USD = 40.00   and   CAD = 30.00  sounds just about right  .....

not sure about EUR ....  GBP = 50.00  

my opinion  DMK ( Deutsche Mark ) might return after ReValuation , also Italian LIRA ,

Greek DRACHMA  ....  

Edited August 5, 2021 by kg1947
spacing .....

[CharlieH]

The start (finally) of a very slipperyslope for the baht, been on the cards, now its starting to bite as red zones increase and pathetic management of the crisis deepens.

 

50 to £ before year end.