Thai worker killed by leftover ammunition in Israeli orchard

[snoop1130]

 

The Thai baht has started to lose value this month, leading to speculation that its recent rally could be losing momentum. This comes as conflict increases between Thailand's government and its central bank.

 

In October, the Baht weakened 2.7% against the US dollar. This came after it had its best quarter since the Asian Financial Crisis. Mizuho Bank predicts that by the end of the year, the baht could slide to 33.6 per dollar. Increased pressure from upcoming Bank of Thailand and Federal Reserve policy meets might negatively influence the Baht. By Friday, the currency had dropped to 33.2.

 

Thailand's government is planning to increase the inflation target next year. This could give them more leverage in their push for lower borrowing costs. Prime Minister Srettha Thavisin has been publicly urging the Bank of Thailand (BoT) to reduce rates to stimulate growth. This has been making investors nervous, causing the baht to depreciate further.

 

Despite this pressure, the central bank is expected to keep its rate at 2.5% this week, resisting requests to ease and insisting on making its own decisions free from government interference.

Investors have sold a total of $1.178 billion from Thailand's stock and bond market this month. This move by the government for a higher inflation target of 1.5%-3.5% for 2025 has led to a negative shift in sentiment towards the currency.

 

As the local tourism season approaches its peak months, pressure on the baht could begin easing. Local stimulus measures, like cash handouts, expected to boost economic growth, limit the harm of a slower pace in Federal Reserve rate cuts. Lloyd Chan, a currency strategist at Mufg Bank, anticipates the baht to reach 32.5 per dollar by the end of 2024.

 

However, market concerns remain over the potential erosion of the independence of Thailand's central bank due to government interference.

 

File photo for reference only

 

-- 2024-10-14

 

 

[Tropicalevo]

Prime Minister Srettha Thavisin has been publicly urging the Bank of Thailand (BoT) to reduce rates to stimulate growth.

 

And I thought that he had resigned.

[KhunBENQ]

If the central bank resists the pressure to lower interest why should the Baht weaken which he didn't during the last days.

I find the whole article quite useless and out of time.

[KhunBENQ]

There was a period end of September to first week of October where the Baht slightly dropped. But today is the 14th!

You don't want to see the one year chart.

Edited 13 hours ago by KhunBENQ

[hotchilli]

As long as the exchange rate stays reasonable I don't mind.