Thai baht’s unexpected surge makes a splash, takes the lead in Asian currency gains

[webfact]

 

In an unexpected buoy of currency today, the Thai baht took the lead in Asian currency gains, reaching a two-month apex. This surge, of 0.9%, comes in the wake of strong hopes for the resolution of Thailand‘s political deadlock and a waning US dollar, factors that buoyed the sentiments of investors.

 

Meanwhile, share market traders adopted a cautious stance; local shares saw a slight uptick of 0.2%.

 

Pita Limjaroenrat, leader of the Move Forward Party (MFP) and candidate for prime minister, emerged as an unforeseen victor in the General Election held on May 14.

Pita yesterday announced that the eight-party alliance, which aims to form the impending government, reasserted their support for his prime ministerial candidacy.

Poon Panichpibool, a markets specialist at Krungthai Bank, offered insights.

 

“Hopes for a political resolution are positively influencing foreign investor sentiment, which is driving the value of the baht. Mild gains are anticipated for the currency in future.”

 

The US dollar index demonstrated a drop of 0.15% in the Asian trade, settling at 99.753. This index gauges the greenback against six other currencies, and this decline sees it hovering near the historic low it hit last Friday.

Despite this, analysts at OCBC, in their briefing, expressed a semblance of optimism.

 

by Alex Morgan

Picture courtesy of vecstock, Freepik

 

Full story: https://thethaiger.com/news/business/thai-baht-leads-asian-currency-gains-amid-political-resolution-hopes

 

-- © Copyright Thaiger 2023-07-19

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

[flyingtlger]

"Thai baht’s unexpected surge"

 

Hardly a surge......

[Colabamumbai]

So its now worth less. 

[anchadian]

You're learning.

Edited July 18, 2023 by anchadian

[Paradise Pete]

37 minutes ago, Colabamumbai said:

So its now worth less. 

If by "it" you mean the baht, it's worth more.

[hotchilli]

2 hours ago, webfact said:

“Hopes for a political resolution are positively influencing foreign investor sentiment, which is driving the value of the baht. Mild gains are anticipated for the currency in future.”

Thai politics are once again in turmoil post election due to the Junta's vice-like grip on the senate who choose who they want not the people.

[Pink Mist]

Off topic post bring Biden into the OP has been removed 

[ezzra]

Good news. Time to go to the bank today and do the transfer i was talking about earlier.

[jacko45k]

2 hours ago, flyingtlger said:

"Thai baht’s unexpected surge"

 

Hardly a surge......

Rallied 0.5 baht/USD, 1.5%. I think that qualifies actually. 

[Bangkok Barry]

The 'political solution' (denying the people the government they voted for) will bring protesters and rioters onto the streets. That's a positive?

[jacko45k]

14 minutes ago, ezzra said:

Good news. Time to go to the bank today and do the transfer i was talking about earlier.

Selling baht then?....

[koolkarl]

Only the Thai central bank, with it's USD swap line, can move the baht currency significantly. No individual can buy  or sell large amounts of baht. It is a controlled currency.  The baht was heavily manipulated yesterday and prior few days as evident by the volume.  In the long run, the baht will fall significantly against the USD.

[JimHuaHin]

A "manufactured" surge so a few Thai billionaires could transfer some money OS?

[RichardColeman]

I actually think it was due to manipulation, basically no movement between £ and $ and Euro, and more chaos than movement forwards in Thai PM situation. Does not make any sense other than a huge 'financial intervention'. Probably at the TAT intervention to get more money

[ThailandRyan]

22 minutes ago, RichardColeman said:

I actually think it was due to manipulation, basically no movement between £ and $ and Euro, and more chaos than movement forwards in Thai PM situation. Does not make any sense other than a huge 'financial intervention'. Probably at the TAT intervention to get more money

I tend to agree as the USD has now slipped backwards just over a full baht in the past week.  The US economy is doing well, stock market increasing, banks seeming to be doing better, at least my stocks are, and Gold prices are solid.  I was set to transfer a large sum when it was at 35.05 Thb to $1 last week, but with the way things were looking waited as it seemed it would continue to either go up a little or stay the same, but to drop to what it is today is definitely someone speculating in order to move money back out.

 

[thailand49]

Like I said everytime I read something about the baht being too weak it does a reverse once again it happens????

[jacko45k]

Just now, thailand49 said:

Like I said everytime I read something about the baht being too weak it does a reverse once again it happens????

Stand by....there has been a turn back towards weakness this morning, and the way Thai politics is going I expect that will be the longer wave direction. 

[ezzra]

1 hour ago, jacko45k said:

Selling baht then?....

Yes and converting to AUD that is also in its weak position right now.

[ThailandRyan]

14 minutes ago, jacko45k said:

Stand by....there has been a turn back towards weakness this morning, and the way Thai politics is going I expect that will be the longer wave direction. 

in 30 minutes its moved weaker, just a tad

 

[thailand49]

Good,  I wonder how does a political coup in a country in regard to the people wishes makes the baht stronger?

They call themselves a Democracy go through a two month process election campaigning, litter countryside with posters, noise pollution with all the roadside advertising causing traffic bottlenecks, then declare a weekend no booze weekend with candiates paying and providing to sway votes, when in the end their constitution states it isn't the people but the MP or Senate that decides who is PM. 

My Thai family all voted for this guy I though Yea right good luck you will need it but watch the soap opera after the election silently if I told them out loud I would be in the dog house. 

The whole process is a joke then you got how many didn't even bother to show up and those who did majority abstained.

The biggest losers are the poor Thais people who don't have a clue it will take much more than a protest to make the real change.????

[KhunBENQ]

4 hours ago, Colabamumbai said:

So its now worth less. 

Interesting conclusion .

Worth less is the Euro e.g.

 

 

Edited July 19, 2023 by KhunBENQ

[sandyf]

1 hour ago, koolkarl said:

In the long run, the baht will fall significantly against the USD.

People have been saying that for the last 25 years, in last 15 years average about 32.

There was a significant fall in first part of last year, that just fizzled out.

Those that think they have crystal balls always use indeterminate phrases like "long run" so they never come to  pass.

[vivananahuahin]

Someone wants to put his money very quickly out, look also next month the foreigners exchange reserves, you will understand.

[brianthainess]

3 hours ago, ezzra said:

Good news. Time to go to the bank today and do the transfer i was talking about earlier.

Err you left it a week to long Unless you are transferring Baht overseas. Oh sorry just read your post, but you could have made it clearer when you made your post.

Edited July 19, 2023 by brianthainess

[EastBayRay]

Thailand simply shored up its own currency due to recent losses via the Thai  central bank.

 

looks like they have set a ceiling and if it goes beyond that they will manipulate it back. 

[ezzra]

4 hours ago, ezzra said:

Good news. Time to go to the bank today and do the transfer i was talking about earlier.

To all those who gave my post the 'confused' emojis ( what are confused about?) i got good swift exch. rate in the bank for THB to AUD.

Edited July 19, 2023 by ezzra

[stix40]

Long term baht will fall against major currencies!

????$$££euro

[fulhamster]

3 hours ago, koolkarl said:

Only the Thai central bank, with it's USD swap line, can move the baht currency significantly. No individual can buy  or sell large amounts of baht. It is a controlled currency.  The baht was heavily manipulated yesterday and prior few days as evident by the volume.  In the long run, the baht will fall significantly against the USD.

Any idea on "how long" that will be ?

[fulhamster]

27 minutes ago, ezzra said:

To all those who gave my post the 'confused' emojis ( what are confused about?) i got good swift exch. rate in the bank for THB to AUD.

You would got an even better rate yesterday

[ezzra]

1 hour ago, fulhamster said:

You would got an even better rate yesterday

Still happy with today's rates, although still not sure what with those multiple 'confused' emojis i get, anyone who gave me care to explain?