Baht To Gain As Rate Cuts Spur Stock Demand, Ubs Says

[sonicdragon]

http://www.bloomberg.com/apps/news?pid=206...id=auJen2Aa_4Gs

[samran]

sounds like the BOT should just concentrate on inflation. Otherwise they between a rock and a hard place in manipulating IR's to control the currency.

Lowering IR's which normally would ease pressure on the currency, simply makes people shift their money into Thai equities, many of which must still seem cheap.

Too much money sloshing about Sonic, looking for a home maybe?

[sonicdragon]

sounds like the BOT should just concentrate on inflation. Otherwise they between a rock and a hard place in manipulating IR's to control the currency.

Lowering IR's which normally would ease pressure on the currency, simply makes people shift their money into Thai equities, many of which must still seem cheap.

Too much money sloshing about Sonic, looking for a home maybe?

Yes I agree.

And so long as the dollar remains weak generally, and the yuan continues to strengthen particularly, in the adsence of bad domestic news, the baht must face continued upward pressure.