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Strongest Baht in 5 Months, Less Than B35/US Dollar


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BANGKOK, Dec 1 (TNA) – This morning the bath value appreciated to 34.97 baht against a US dollar, its strongest level in five months, compared to its close yesterday at 35.26 baht per dollar.

 

Kanchana Chokpaisarnsilp, a research executive at Kasikorn Research Center, said Asian currencies including baht appreciated as US dollar weakened after Federal Reserve chairman Jerome Powell said interest rate increase could slow down in December.

 

Poon Panichpibool, markets strategist at Krungthai Global Markets of Krungthai Bank, said players in the monetary market of the United States were less concerned about the interest rate increase by the Fed and fully exposed themselves to risks as Mr Powell agreed with other Fed officials to slow down the Fed’s rate hike.

 

Full Story: https://tna.mcot.net/english-news-1068296

 

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-- © Copyright Thai News Agency 2022-12-01
 

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At a time when tourism looks to be the strongest pillar of the Thai economy it makes economic sense to maintain the value of the Baht at high levels.

 

I did mention recently that Thailand runs a current account surplus and is one of several Asian countries bucking the worldwide trend into recession.

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14 hours ago, dinsdale said:

Rates up. Exports expected to reduce. Tourism expected to reduce. Thai baht strenghtens. 

TAT maintains tourism will rocket in Thailand next year.. back to 80% of pre-pandemic times.

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A strong currency doesn’t actually help any country as it makes exports far more expensive,stocks in that country’s companies more expensive and deters FDI/Foreign Direct Investment.

Of course no-one expects Thailand to have worked all this out though?

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No doubt the top generals, and the other highly corrupt men in positions of leadership, are taking advantage to this and buying up villas, yachts, planes and helicopters around the world. I would guess that are surprised and pleased they have been able to hold onto power this long. 

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9 hours ago, new2here said:

I don’t think it’s the baht getting stronger per se.. i think it’s more to do with how the market views the USD going forward.


Given Chairman Powells’ comments I suspect the market sees the dollar at perhaps topping out as the signal seems to be smaller FOMC upticks of perhaps 50bp and not the much larger 75bps they’ve done.

 

So, i suspect the THB/USD issue is more to do with movement in the USD than it is the relative strength or weakness of the THB itself 

Thai bath is also again other currency increasing in strength, which is a problem for a country that is depending on tourist from those areas of the currencies it it getting stronger against.

 

When Thailand wants to become an importer it does make sense also to reform the total Thai economics and industry to reflect this and after than then Thaial can have a strong currency. now it is loosing more then it things it gains.. 

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12 hours ago, ozimoron said:

At a time when tourism looks to be the strongest pillar of the Thai economy it makes economic sense to maintain the value of the Baht at high levels.

 

I did mention recently that Thailand runs a current account surplus and is one of several Asian countries bucking the worldwide trend into recession.

https://tradingeconomics.com/thailand/current-account

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14 hours ago, Autonuaq said:

Thai bath is also again other currency increasing in strength, which is a problem for a country that is depending on tourist from those areas of the currencies it it getting stronger against.

 

When Thailand wants to become an importer it does make sense also to reform the total Thai economics and industry to reflect this and after than then Thaial can have a strong currency. now it is loosing more then it things it gains.. 

This is about USD movement, not THB rises or falls.

 

Thailand is not dependent on tourism, Thailand is dependent on exports, of which, international tourism is one component at about 11% of GDP. (Yes, really, international tourism in an export in economics terms)

 

And Thailand does not want to become an importer, that's the very last thing it wants. The Baht becomes strong because the current account remains in surplus. To accomplish that, Thailand needs to export more than it imports.

 

 

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