How does the Baht stay so strong ??

[fulhamster]

So despite 2 recent interest rate rises by the US and UK, the baht remains strong, mainly aginst the GBP. I realise that the GBP has tanked vs the USD, but the baht hasn;t really moved.

 Any explanation how this continues ?

[Peterw42]

You have sort of answered your own question. The Baht is very much linked to the USD, so when the pound is down against the dollar, its also down against the baht.

[topt]

2 minutes ago, fulhamster said:

but the baht hasn;t really moved.

Against the USD it has moved quite a bit. Recent articles saying the $/baht is the strongest since 2006 or similar. XE this morning suggests mid rate of 37.25 whereas earlier this year it was around 32........

[worgeordie]

At the moment the Government is throwing money away and 

is giving support to the Baht.

regards Worgeordie

[fulhamster]

Just now, Peterw42 said:

You have sort of answered your own question. The Baht is very much linked to the USD, so when the pound is down against the dollar, its also down against the baht.

But the USD has had a series of rate rises, whereas the baht has had one - which the banks have been told not to apply. I realise the GBP is not so strong, but the baht should be weakening vs the USD as well, perhaps even more than the GBP

[fulhamster]

1 minute ago, worgeordie said:

At the moment the Government is throwing money away and 

is giving support to the Baht.

regards Worgeordie

Thank You. I had sort of guessed that -- bt for how long can they keep on supporting it ??

[HighPriority]

Didn’t I read that fearless leader had spoken re the Baht/$ value ?

Surely such authority should be enough for mortals like you and I.

[KhunBENQ]

The thread title has a little flaw. Should read:

Why is the Pound so weak ????

Like it or hate it but the USD is still the reference.

 

 

 

[fulhamster]

4 minutes ago, HighPriority said:

Didn’t I read that fearless leader had spoken re the Baht/$ value ?

Surely such authority should be enough for mortals like you and I.

Yes, the caretaker has decreed what the rate should be.  Just an opinion, not manipulation

 

[KhunBENQ]

If the Baht would have been strong and followed the Dollar, the Pound would now be at about 37.

So be happy that the Baht is weak.

(comment from a Euro pensioner)

[Chivas]

The Baht is at its weakest level for 16 years not its strongest lol at over 37.30 at time of post

 

Last time we saw Dollar/Baht at this level was September 2006......every single currency exchange no matter what base currency we bring to Thailand involves the Dollar/Baht ratio

 

The sum of (Dollar/Baht) x (Sterling/Dollar)  equates to Sterling/Baht

 

Movement in either pairing affects the bottom line. Forget all the "noise" you'll hear on the thread its those two pairings that solely matter

[Chivas]

51 minutes ago, worgeordie said:

At the moment the Government is throwing money away and 

is giving support to the Baht.

regards Worgeordie

What are you talking about lol ??  Support to the Baht ??  From who ??

[KhunBENQ]

I think they learned the lesson from 1997 and won't try to stem against the Dollar rise.

[Henryford]

The Baht is not strong the others are weak. Does Thailand have a National Debt of 2.5 trillion GBP, 110% of GDP, a massive fiscal deficit and 10% inflation? I am surprised the Pound is not worthless.

[Chivas]

16 minutes ago, Henryford said:

The Baht is not strong the others are weak. Does Thailand have a National Debt of 2.5 trillion GBP, 110% of GDP, a massive fiscal deficit and 10% inflation? I am surprised the Pound is not worthless.

Its utterly astonishing how so many just dont grasp how foreign exchange works.....thats not aimed at the quoted poster per se

 

The Baht takes its "fix" off the worlds "reserve" currency USD 24/7   (as does every other currency for that matter)

 

Dollar/Baht is part of EVERY exchange rate that relates to Thailand whether your fiat currency is Sterling/Euro/AUD etc etc etc

 

Its the strongest or weakest depending on your point of view its been since 2006

 

(Dollar/Baht) x (Sterling/Dollar)

(Dollar/Baht) x (AUD/Dollar)

(Dollar/Baht) x (Euro/Dollar)

 

And so on.....

 

What is WEAK is all our fiat currencies value against the USD

 

No matter where you come from only 2 ratio's are of importance

 

Dollar/Baht and your OWN currencies value against the USD

 

Anything else is just "noise"

 

[worgeordie]

1 hour ago, Chivas said:

What are you talking about lol ??  Support to the Baht ??  From who ??

From the Government , they just spent 19 Billion Baht supporting

the Baht , do you not read the news ?  

regards  Worgeordie

[fulhamster]

1 hour ago, worgeordie said:

From the Government , they just spent 19 Billion Baht supporting

the Baht , do you not read the news ?  

regards  Worgeordie

How long can they continue to do this ??

[Stocky]

Singapore Dollar is doing just fine against the Baht. Your problem is the GBPeso.

 

[Chivas]

8 hours ago, worgeordie said:

From the Government , they just spent 19 Billion Baht supporting

the Baht , do you not read the news ?  

regards  Worgeordie

Dont give up your day job

Supporting the Baht ??  They're actively shorting it fella

Lowest for 16 years

If thats support God alone knows.......

[worgeordie]

3 hours ago, Chivas said:

Dont give up your day job

Supporting the Baht ??  They're actively shorting it fella

Lowest for 16 years

If thats support God alone knows.......

Where did the 19 Billion Baht  go then ? , lowest for 16 years , against the US Dollar,

but not so against other major currencies , 

 

regards worgeordie

 

 

[itsari]

22 hours ago, worgeordie said:

At the moment the Government is throwing money away and 

is giving support to the Baht.

regards Worgeordie

Many countries are doing the same . 

The US dollar strength is causing big problems for many countries .

 

[KhunBENQ]

Looks like the GBP has done another dive.

40.7 at currency market.

"Lowest rate since 37 years" is one headline.

 

Makes the Euro loss feel moderate.

[jwdub12]

FWIW Here's the actual article

https://www.thaienquirer.com/44229/thai-baht-heads-to-near-37-baht-us-as-bot-defends-its-use-of-19-billion-in-defending-the-currency/

[KhunBENQ]

1 hour ago, KhunBENQ said:

Looks like the GBP has done another dive.

Just noticed that it was good for a news thread 

[Saddic]

Baht freefall could hit 38
 

 

https://www.bangkokpost.com/business/2399250/baht-freefall-could-hit-38

 

Thai Central Bank is out of bullets, and the US Fed's aint done raising rates...  nuff said...

[Stocky]

1 hour ago, Saddic said:

Thai Central Bank is out of bullets

Hardly, with interest rates at 0.75% they have plenty of ammunition in hand.

[AgMech Cowboy]

2 hours ago, Stocky said:

Hardly, with interest rates at 0.75% they have plenty of ammunition in hand.

Yep, I sure hope they don't use them. ????   

I don't think a stronger Baht will help their export businesses, which they need to fire up the economy.

[Expat68]

I gave up trying to work it out

[Isaan sailor]

On 9/23/2022 at 11:12 AM, Chivas said:

Its utterly astonishing how so many just dont grasp how foreign exchange works.....thats not aimed at the quoted poster per se

 

The Baht takes its "fix" off the worlds "reserve" currency USD 24/7   (as does every other currency for that matter)

 

Dollar/Baht is part of EVERY exchange rate that relates to Thailand whether your fiat currency is Sterling/Euro/AUD etc etc etc

 

Its the strongest or weakest depending on your point of view its been since 2006

 

(Dollar/Baht) x (Sterling/Dollar)

(Dollar/Baht) x (AUD/Dollar)

(Dollar/Baht) x (Euro/Dollar)

 

And so on.....

 

What is WEAK is all our fiat currencies value against the USD

 

No matter where you come from only 2 ratio's are of importance

 

Dollar/Baht and your OWN currencies value against the USD

 

Anything else is just "noise"

 

Well said.  And I’ll add, every dog has its day.  USD has languished in the high 20’s and low 30’s far too long.  I do see a pattern now.  When US stocks go down—Baht goes down on USD (risk off).  When US stocks rise—Baht also rises (currency traders call this: risk on).

[ChrisKC]

8 hours ago, KhunBENQ said:

Looks like the GBP has done another dive.

40.7 at currency market.

"Lowest rate since 37 years" is one headline.

 

Makes the Euro loss feel moderate.

Yes it has, arising I think, from a mini budget in the UK yesterday 23 Sept. 

 

My pensions arrived two days before at the 42 rate so I haven't been affected (until next month?)