Baht Rises To Strongest Level In Decade

[chinthee]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

[midas]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

Under scenario # 1 I would have thought gold would be what people

rush to-not the US dollar ? What possible security would there be

in the currency of a country which is already so heavily in debt ?

[bendix]

To Pompooeyman, it is usual to add something when you reply.....................

Based on his earlier posts, I'm not so sure.

[POMPOOEYMAN]

To Pompooeyman, it is usual to add something when you reply.....................

Based on his earlier posts, I'm not so sure.

NOW NOW There is no need to get sarky.

There are lots and lots of building projects waiting to start. But that's just it they are shelved and waiting.

If you had the finance in place to build a hotel or a block of condominiums at this precise moment, would you go ahead, bearing in mind you need people to buy or rent these ( AND THERE ISN'T A SHORTAGE OF THESE ALREADY BUILT) or would you hold fire a while and see how things turn out in thailand (ECONOMY, GOVERNMENT)etc. I know what i would do.

GOOD HEALTH TO YOU ALL ! POMPOOEYMAN

[VegasVic]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

I'm not certain what a war with Iran would have to do with the "baht rising to its strongest level in a decade", but it certainly would shut off the oil supply to China in a hurry and perpetuate the market crash (in Shanghai) that is just waiting to happen already, and then the baht would tumble from its heights as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis! Of course the same thing will eventually occur anyway without a war in Iran.

[Naam]

as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis!

i (not so) humbly beg to differ Vic. recent years (2001 to date) and various crises do not show any flight in USD or Treasuries as it happened during decades before.

[chinthee]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

I'm not certain what a war with Iran would have to do with the "baht rising to its strongest level in a decade", but it certainly would shut off the oil supply to China in a hurry and perpetuate the market crash (in Shanghai) that is just waiting to happen already, and then the baht would tumble from its heights as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis! Of course the same thing will eventually occur anyway without a war in Iran.

Vegas, I think you misunderstood my post. I agreed with you. I said the dollar would spike upwards in a war with Iran.

And, to Dr. Naam, the difference is the relative size of Iran as an oil producer.

Edited July 17, 2007 by chinthee

[easybullet3]

Live rates at 2007.07.03 06:39:16 UTC

20,000.00 THB

=

311.926 GBP

Thailand Baht United Kingdom Pounds 1 THB = 0.0155963 GBP 1 GBP = 64.1179 THB

The usual visit to thai atm!!!

This just shows how foolish it is to use an ATM in Thailand to draw money from overseas.

The onshore rate is 69.16 baht/GBP.

So you lost around 10% on your transaction.

If you can, open a bank account in Thailand and TT "sterling funds" to the account

Be sure to emphasise the word sterling funds, then you get the good exchange rate.

if you are from the UK, open a NATIONWIDE ACCOUNT. its FREE ATMS abroad for ANY AMOUNT. and the exchange rate is GOOD!!!!!!!

its the only bank I know that does it. I have used my nationwide cash card in japan, china, thailand, malaysia, singapore, USA, vietnam etc... always free... rate is currently about 69 baht per english pound.

so I can widthdraw 100 baht if I want and its NO CHARGE.

saves carrying large amounts with me.

[bendix]

is it just me, or is anyone else starting to think a division of Nationwide BS's marketing department are lodging in our beloved TV?

[Naam]

is it just me, or is anyone else starting to think a division of Nationwide BS's marketing department are lodging in our beloved TV?

the answer is a clear "NO"

[Naam]

by the way... WHO or WHAT is "Nationwide"? a global political party?

[LaoPo]

is it just me, or is anyone else starting to think a division of Nationwide BS's marketing department are lodging in our beloved TV?

NO...but you might want to have another look at your own signature...?

LaoPo

[Meerkat]

as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis!

i (not so) humbly beg to differ Vic. recent years (2001 to date) and various crises do not show any flight in USD or Treasuries as it happened during decades before.

The UST market is still very much thought of as a "safe harbour" and regularly gets bid up when other markets hiccup. Sounds like flight to quality to me.

[LaoPo]

Economists Split on Whether Thailand Will Keep Rate Unchanged

By Anuchit Nguyen and Michael Munoz

July 17 (Bloomberg) -- Economists are divided over whether Thailand's central bank will keep its benchmark interest rate unchanged for the first time this year following four consecutive cuts.

Excerpt:

"Some economists, including Prakash Sakpal of ING Bank NV in Singapore, see room for the central bank to reduce rates for a fifth time this year at tomorrow's meeting."

http://www.bloomberg.com/apps/news?pid=206...&refer=asia

LaoPo

[lazeeboy]

Economists Split on Whether Thailand Will Keep Rate Unchanged

By Anuchit Nguyen and Michael Munoz

July 17 (Bloomberg) -- Economists are divided over whether Thailand's central bank will keep its benchmark interest rate unchanged for the first time this year following four consecutive cuts.

Excerpt:

"Some economists, including Prakash Sakpal of ING Bank NV in Singapore, see room for the central bank to reduce rates for a fifth time this year at tomorrow's meeting."

http://www.bloomberg.com/apps/news?pid=206...&refer=asia

LaoPo

over the last few decades the baht has been strong and then collapsed ,the last time was 1997, beware its due to collapse again soon .......

[Plus]

Apparently the whole country can't wait when it collapses to at least last year levels.

[Naam]

over the last few decades the baht has been strong and then collapsed ,the last time was 1997, beware its due to collapse again soon .......

before 1997 the Baht was only artificially strong because the currency was pegged to the US-Dollar. any parallels to '97 are presently wishful thinking and those who are talking today about a collapse should make sure they have rubber sheets between the linen and the mattress.

[highdiver]

over the last few decades the baht has been strong and then collapsed ,the last time was 1997, beware its due to collapse again soon .......

before 1997 the Baht was only artificially strong because the currency was pegged to the US-Dollar. any parallels to '97 are presently wishful thinking and those who are talking today about a collapse should make sure they have rubber sheets between the linen and the mattress.

thank you for your words of wisdom.

however why ruin a typicaly good "dooms day" thread. let them play longer in those speculations.

[Charma]

Looks like the dollar might just be about to drop below the 30 baht mark. Also UK pound is at a 30 year high against the dollar at 2.04!

http://investing.reuters.co.uk/Investing/C...s&WT.srch=1

Edited July 17, 2007 by Charma

[Naam]

over the last few decades the baht has been strong and then collapsed ,the last time was 1997, beware its due to collapse again soon .......

before 1997 the Baht was only artificially strong because the currency was pegged to the US-Dollar. any parallels to '97 are presently wishful thinking and those who are talking today about a collapse should make sure they have rubber sheets between the linen and the mattress.

thank you for your words of wisdom.

however why ruin a typicaly good "dooms day" thread. let them play longer in those speculations.

i will try

[VegasVic]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

I'm not certain what a war with Iran would have to do with the "baht rising to its strongest level in a decade", but it certainly would shut off the oil supply to China in a hurry and perpetuate the market crash (in Shanghai) that is just waiting to happen already, and then the baht would tumble from its heights as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis! Of course the same thing will eventually occur anyway without a war in Iran.

Vegas, I think you misunderstood my post. I agreed with you. I said the dollar would spike upwards in a war with Iran.

And, to Dr. Naam, the difference is the relative size of Iran as an oil producer.

I understood Chin, my point is that you don't need a war in Iran to turn the dollar and baht around, this will happen soon enough as the chinese markets are ripe for a colapse, and despite what the good Dr. has posted the U.S. has not had any problems with their treasury auctions in the last few years, despite the low yeilds! In a time of crisis the money will still flow to U.S. bonds and equities, and the coming crash in china will be a major crisis.

[chinthee]

Ok, Vegas, good, d'accord.

[LaoPo]

In a time of crisis the money will still flow to U.S. bonds and equities, and the coming crash in china will be a major crisis.

OK, let be bite one more time

If that crisis, in China, occurs, it will be a Global crisis and prices of ALL products, commodities and food will rise sky high in the US and the rest of the world.

Millions of people in the West will loose their jobs, alike in China..BUT..the Chinese are used to survive on low-cost for housing and food and most of them still remember the devastating era, prior to the present boom and will adapt a lot easier than people in the US or EU and other Western nations.

Especially the US population with their low savings and high spending behavior will face enormous problems. Thousands and thousands of people will no longer be able to pay for their mortgages...

But, what I fear most, is a trade war between the US and China which is already in place but still on a minor scale.

THAT will be devastating for the whole world, not just China; WHAT will the Chinese, and don't forget the Japanese, do with their Trillions of US Bonds if they need money...do you know ?

It's like you almost WISH that there will be a crisis, in China, VegasVic with your repeatedly doom scenario for China......why?

We live in a Global world, most of us, not in a desert.

Playing golf today ?

LaoPo

[VegasVic]

In a time of crisis the money will still flow to U.S. bonds and equities, and the coming crash in china will be a major crisis.

OK, let be bite one more time

If that crisis, in China, occurs, it will be a Global crisis and prices of ALL products, commodities and food will rise sky high in the US and the rest of the world.

Millions of people in the West will loose their jobs, alike in China..BUT..the Chinese are used to survive on low-cost for housing and food and most of them still remember the devastating era, prior to the present boom and will adapt a lot easier than people in the US or EU and other Western nations.

Especially the US population with their low savings and high spending behavior will face enormous problems. Thousands and thousands of people will no longer be able to pay for their mortgages...

But, what I fear most, is a trade war between the US and China which is already in place but still on a minor scale.

THAT will be devastating for the whole world, not just China; WHAT will the Chinese, and don't forget the Japanese, do with their Trillions of US Bonds if they need money...do you know ?

It's like you almost WISH that there will be a crisis, in China, VegasVic with your repeatedly doom scenario for China......why?

We live in a Global world, most of us, not in a desert.

Playing golf today ?

LaoPo

What is going to happen to the chinese equity markets is going to happen, no ammount of wishful thinking on either side of the coin is going to change this. I would liken the situation in chinese equities to Newtons first law of motion. Shanghai has nearly reached a critcal mass, and when the downturn begins it will be amplified by not only the usual panic but also the highly leveraged money that was thrown into "Casino Shanghai" by many of the hegde funds. Many U.S. multinationals will take a hit and many U.S. hedge funds will take a hit and some will go out of business (which may be a good thing), but life will go on and money will flow to safety in the U.S. bond and equity markets. No golf today its a little gloomy here in Sedona, with thunderstorms likely this afternoon, maybe I'll go to the movies and see "Sicko" I can always use a good laugh!

[lannarebirth]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

I'm not certain what a war with Iran would have to do with the "baht rising to its strongest level in a decade", but it certainly would shut off the oil supply to China in a hurry and perpetuate the market crash (in Shanghai) that is just waiting to happen already, and then the baht would tumble from its heights as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis! Of course the same thing will eventually occur anyway without a war in Iran.

Vegas, I think you misunderstood my post. I agreed with you. I said the dollar would spike upwards in a war with Iran.

And, to Dr. Naam, the difference is the relative size of Iran as an oil producer.

I understood Chin, my point is that you don't need a war in Iran to turn the dollar and baht around, this will happen soon enough as the chinese markets are ripe for a colapse, and despite what the good Dr. has posted the U.S. has not had any problems with their treasury auctions in the last few years, despite the low yeilds! In a time of crisis the money will still flow to U.S. bonds and equities, and the coming crash in china will be a major crisis.

I suppose you could make an argument for a collapse in Chinese markets, given the investing mania going on there now. You could also see them double or treble from here, and right fast too. There's no mania like an Asian mania.

[chinthee]

To all our AMERICAN friends just wait and hold your horses for six months and you will see the foreign investment start to lose favour with not just thailand but asia as a whole.

What do you expect in 6 months to make the US dollar stronger ?

this is pure speculation on my part, but in answer to your question...

either..

1) the start of another war in the middle east, and/or,

2) the revaluation of the yuan.

let us see what happens.. only time will tell.

The only war in the middle east that would make the dollar spike would be with Iran. I doubt any war involving Israel/Syria/Lebanon, whatever, would do that.

I'm not certain what a war with Iran would have to do with the "baht rising to its strongest level in a decade", but it certainly would shut off the oil supply to China in a hurry and perpetuate the market crash (in Shanghai) that is just waiting to happen already, and then the baht would tumble from its heights as money would naturally flow out of Thailand and towards safety(the U.S. markets and the U.S. dollar) as it always has done in times of crisis! Of course the same thing will eventually occur anyway without a war in Iran.

Vegas, I think you misunderstood my post. I agreed with you. I said the dollar would spike upwards in a war with Iran.

And, to Dr. Naam, the difference is the relative size of Iran as an oil producer.

I understood Chin, my point is that you don't need a war in Iran to turn the dollar and baht around, this will happen soon enough as the chinese markets are ripe for a colapse, and despite what the good Dr. has posted the U.S. has not had any problems with their treasury auctions in the last few years, despite the low yeilds! In a time of crisis the money will still flow to U.S. bonds and equities, and the coming crash in china will be a major crisis.

I suppose you could make an argument for a collapse in Chinese markets, given the investing mania going on there now. You could also see them double or treble from here, and right fast too. There's no mania like an Asian mania.

I think that will be called a...correction...

[bingobongo]

Thailand: Measures Considered to Reduce Pressure on Decade-High Baht

The central Bank of Thailand is considering proposals to reduce controls on outbound capital in a fresh bid to cool appreciation in the Thai baht. Measures reportedly under consideration include raising caps on outward investment and extensions of the period for which exporters are allowed to hold U.S. dollars. Similar measures were put forward to the government by a joint private sector committee, which reported to the commerce Ministry yesterday. The committee included the Federation of Thai Industries, the Board of Trade of Thailand and the Thai Banker's Association.

Significance: The Thai baht continues to trade at near-decade highs despite the economy's indifferent growth. The currency has been buoyed by substantial carry forward trades. These have continued despite recent cuts in interest rates which were aimed at spurring sluggish domestic demand. Concerns remain that the currency's sharp appreciation could undermine exports, which remain the main driver of growth. The government imposed a series of controversial controls on inward investment in December 2006 in an earlier bid to curb the currency, and these measures remain in place.

Edited July 17, 2007 by bingobongo

[LaoPo]

I deleted my post since it was off topic.

Sorry for that. Mea Culpa.

LaoPo

Edited July 17, 2007 by LaoPo

[LaoPo]

Breaking news/Bangkok Post.

Industrial sector reform may be vital

The Thai government announced it would discuss industrial restructuring policy in light of the strong baht on July 19, as part of a series of measures to help operators battle the impact of currency appreciation.

In addition, Finance Minister Chalongphob Sussangkarn and Bank of Thailand Governor Tarisa Watanagase have been mandated to meet every Friday specifically to evaluate and respond rapidly to the currency movement, the Cabinet agreed Tuesday.

Rest of article here, from:

http://www.bangkokpost.com/breaking_news/b...s.php?id=120261

LaoPo

[Jai Dee]

PM believes Thai currency still manageable

The Prime Minister, Gen. Surayud Chulanont, insists that the sharp appreciation of Thai baht at the moment will not lead to a financial crisis similar to the one in 1997.

Many parties have expressed their concern over the strengthening of Thai baht as it could affect the local economy. However, Prime Minister Surayud says he believes the current financial situation is still under control and problems should not arise.

Source: Thai National News Bureau Public Relations Department - 18 July 2007