Baht depreciation expected to deepen amid global market volatility

[webfact]

 

Financial experts are predicting a further depreciation of the baht throughout this month and next, due to the increased volatility in the global money and capital markets. This follows the US Federal Reserve’s recent suggestion of a potential increase in its benchmark interest rate.

 

Poon Panitchpibun, a strategist at Krungthai Global Market, a research centre of Krungthai Bank, noted that the baht opened on Thursday at 36.25 against the US dollar, a depreciation from the previous day’s close of 36.07.

 

The baht had shown a gradual strengthening, fluctuating between 35.86 to 36.23 per dollar on Wednesday night, before it slipped as the dollar and US 10-year bond yields rose, following the Federal Reserve’s hint at an additional interest rate hike this year and fewer cuts next year.

 

Analysts interpret the Federal Reserve’s actions as an attempt to achieve a soft landing for the US economy, a view reflected in the revised economic growth forecasts for this year and next. The US stock market, however, is feeling the pressure from the signal of continued rate increases, potentially resulting in an extended period of elevated rates. Consequently, bond yields rose to 4.40% following the Federal Reserve’s latest policy statement and projections.

The research unit at Krungthai Bank believes the baht depreciation may be more than expected and stay weaker for longer, due to the Federal Reserve’s commitment to maintaining high interest rates over a prolonged period. The baht could also face pressure from foreign investors selling Thai assets as financial markets continue to exhibit a “risk-off” state, with a short-term rebound unlikely.

 

by Alex Morgan

Top Photo: Freepik

 

Full story: The Thaiger 2023-09-22

 

- 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.

 

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[jacko45k]

Good... when should we send money to pre-empt a tax bill?

[2baht]

3 minutes ago, webfact said:

Financial experts are predicting a further depreciation of the baht throughout this month and next

Crash and burn!

[Middle Aged Grouch]

1 US$ should give at least 41 THB

[hotchilli]

4 hours ago, jacko45k said:

Good... when should we send money to pre-empt a tax bill?

Touch my pension I'm off to greener pastures.

That would be the last straw for me.

[RichardColeman]

With Biden and the democrats destroying the USA with overspending and paying 35 cents on every dollar borrowed on debt, plus paying out 5.5% or whatever on 6 months investments, people in my mind are running to get dollars to invest in the USA debt market. A guaranteed 5.5% on the debt market is a great payout as opposed to risky shares.

 

People in charge of the USA finances and overspending are complete idiots

 

 

 

 

[wwest5829]

44 minutes ago, RichardColeman said:

With Biden and the democrats destroying the USA with overspending and paying 35 cents on every dollar borrowed on debt, plus paying out 5.5% or whatever on 6 months investments, people in my mind are running to get dollars to invest in the USA debt market. A guaranteed 5.5% on the debt market is a great payout as opposed to risky shares.

 

People in charge of the USA finances and overspending are complete idiots

 

 

 

 

So, I can assume you opposed the 2017 Republican tax cuts while not reducing spending?

[Peabody]

2 hours ago, RichardColeman said:

With Biden and the democrats destroying the USA with overspending and paying 35 cents on every dollar borrowed on debt, plus paying out 5.5% or whatever on 6 months investments, people in my mind are running to get dollars to invest in the USA debt market. A guaranteed 5.5% on the debt market is a great payout as opposed to risky shares.

 

People in charge of the USA finances and overspending are complete idiots

 

 

 

 

Yeah, that 7.7 TRILLION dollar overspending by Twittler hurt quite a bit.

[DonniePeverley]

Every currency is weakening against the dollar. The pound is only 1.27.

 

Before Brexit we were getting around 1.75

 

 

[RichardColeman]

2 hours ago, wwest5829 said:

So, I can assume you opposed the 2017 Republican tax cuts while not reducing spending?

As I am not a American citizen I would have to say Reps or Dems or even my own UK government overspending without future cuts is idiotic

[spidermike007]

Of course this has nothing to do with the Prayuth Decimation. Never their own fault. Always something else. Caused by them, not us! Not about falling exports. Not about falling investment money. Not about our own sabotage of the tourism industry. Not about government instability. No, no. Not us. Them.

Edited September 22, 2023 by spidermike007

[bignok]

Who are these experts? Only 2 economists preducted the gfc out of many thousands. Most "exoerts" are just full of crap.

[connda]

10 hours ago, webfact said:

The research unit at Krungthai Bank believes the baht depreciation may be more than expected and stay weaker for longer, due to the Federal Reserve’s commitment to maintaining high interest rates over a prolonged period.

Good! 

[connda]

FYI,
This 'experts' are using the selling rate.  The selling rate affects virtually none of us.  It's the buying rate that we're interested in as we sell USD to the Thai banks with foreign currency transfers.

BKK Bank as of today for buying / selling $50 - $100
Buying:  35.52
Selling:  36.25

Yeah, we got a nice bump since the beginning of the year.  It may trend higher, it may not.
Every central bank on the planet is now addicted to debt, so the global financial markets will probably be interesting over the next few years.  Beat the heck out of the Buying price of 29.34 back in late 2020. 

[wwest5829]

1 hour ago, RichardColeman said:

As I am not a American citizen I would have to say Reps or Dems or even my own UK government overspending without future cuts is idiotic

My apologies, I noted your faulting Biden and Democrats without also citing Trump and Republicans.

[bizboi]

12 hours ago, DonniePeverley said:

Every currency is weakening against the dollar. The pound is only 1.27.

 

Before Brexit we were getting around 1.75

 

You mean in 1874? And yes quite right … you should thank Brexit supporters!

[Gknrd]

I am taking advantage of the 5.5% T Bills. Finally sold off all my toxic China assets. I am feeling pretty good. Now Thailand is betting on China to revive the economy when China is in a death spiral financially.

It will keep strengthening , Won't be long before I am enjoying 180 days of 40+ to the dollar days in Thailand.

Thank goodness for the great Thai government. And the elite running the country. Could not of planned it better for me.

Edited September 22, 2023 by Gknrd

[jacko45k]

16 hours ago, hotchilli said:

Touch my pension I'm off to greener pastures.

That would be the last straw for me.

Well it is supposed to be taxed at source... and UK does have a double taxation agreement, so I hope it would be safe. That said my State pension is below the UK tax free allowance, so in reality none is paid, but it would qualify for payments  under Thailand's levels. Just have to see how it pans out, but I too would consider moving on if I am going to lose a fair percentage of my disposable income.  

[747man]

On 9/22/2023 at 5:42 PM, DonniePeverley said:

Every currency is weakening against the dollar. The pound is only 1.27.

 

Before Brexit we were getting around 1.75

 

 

Yeah !! Maybe 10 Years BEFORE Brexit.....

Edited September 24, 2023 by 747man