US Dollar Soars To 21-Month High Against Thai Baht

[PeaceBlondie]

Notwithstanding the US people will be the losers with a very strong dollar. eg. The cost of exported vehicles will be another nail in the coffin of an already troubled industry. The Europeans, Airbus Industries and the like must be laughing from the roof tops.

Maybe your point is valid, but the example is not. Other than a few Harley Davidsons with lots or parts made overseas, and the occasional Lincoln limousine, there are very few vehicles exported from the USA. You see very few Mercury or Pontiac saloons in Yorkshire or Madrid. I bet Kybota exports more tractors than Caterpillar does.

[bubba]

What a spectacularly misleading headline. Have a look at the graphic below. Does it look like the USD is soaring against the blue one and the red one is fairly steady, but weakening gradually? Don't click on it yet to see the enlarged version. Now click on it to enlarge and look at the legend.

[robee]

What a spectacularly misleading headline. Have a look at the graphic below. Does it look like the USD is soaring against the blue one and the red one is fairly steady, but weakening gradually? Don't click on it yet to see the enlarged version. Now click on it to enlarge and look at the legend.

misleading but not sure i follow, what id the comparison of aud?

[bubba]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

[robee]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

thanks for that, i see said the blind man. headline, looking at a again, is misleading.

[robee]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

thanks for that, i see said the blind man. headline, looking at a again, is misleading.

how do you get the image to transfer to this post?

[bdenner]

---------- Maybe your point is valid, but the example is not. Other than a few Harley Davidsons with lots or parts made overseas, and the occasional Lincoln limousine, there are very few vehicles exported from the USA. You see very few Mercury or Pontiac saloons in Yorkshire or Madrid. I bet Kybota exports more tractors than Caterpillar does.

Yes I agree it was probably a poor example but what I'm trying to put over is the strong Dollar along with the overvalued Baht is not good for jobs and the mainstream populations in either country. Sure, importers and ex pat Americans living overseas will be loving it.

[bubba]

To upload an image, first look at the lower right-hand side of the full add reply page. Upload your file. Then add it using the Attachment Editor drop down pn the lower left hand side of the page.

[robee]

To upload an image, first look at the lower right-hand side of the full add reply page. Upload your file. Then add it using the Attachment Editor drop down pn the lower left hand side of the page.

[robee]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

bubba, how do you superimpose both currency comparisons on one yahoo chart.

thanks in advance for all your help. learn more info here than i ever did in school, probably my fault and not the institutions...

[bubba]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

bubba, how do you superimpose both currency comparisons on one yahoo chart.

thanks in advance for all your help. learn more info here than i ever did in school, probably my fault and not the institutions...

I did this with Yahoo Finance. You will need a Yahoo account to get started. Here's how I did it:

Go to the Finance section and create a portfolio using the currency symbol of choice. Then open it and look at the chart. There is a box below the chart where you can add another symbol to do a comparison chart.

[robee]

I did this with Yahoo Finance. You will need a Yahoo account to get started. Here's how I did it:

Go to the Finance section and create a portfolio using the currency symbol of choice. Then open it and look at the chart. There is a box below the chart where you can add another symbol to do a comparison chart.

thx bubba,

more than i ever learned in school...

[robee]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

and against the yen if the chart uploads ok

echarts.htm

[VegasVic]

USD is gaining on all currencies.

This has very little to do with Thailand and a whole lot to do with the USA and the global financial crisis. The more uncertain the future looks the more people sell assets and put them in other dollar denominated assets...creating two transactions where dollars are needed (the selling and the buying) increasing the demand for dollars.

One very odd consequence of Wall Street screwing the world over has been they have made the USD surge.

Notwithstanding the US people will be the loosers with a very strong dollar. eg. The cost of exported vehicles will be another nail in the coffin of an already troubled industry. The Europeans, Airbus Industries and the like must be laughing from the roof tops.

If John McCain was going to be ingnaugurated in the 3rd week of January 2009 then I would tend to agree with you to a certian extent as he is a free trader, however we have a guy named Obama that is going to be our next President and between Mr. Obama and the liberal Demacrats that control both houses of Congress you will be seeing some very protectionist legislation coming forward! Its kind of ironic that there was such huge support for Obama over in Europe and yet Obama will be a very bad President for Europoean firms who export to the U.S.

[robee]

The red line is Thai Baht and the blue line is Australian Dollars.

Just for fun, here is a chart comparing Baht to Philippine Pesos. These two currencies have often tracked together in the past. The red line is Pesos and the blue line is Baht. Again, the Baht weakening less quickly.

here it is in a basic chart

[digitele]

Wait until NY markets open next week (Thursday&Friday were holidays) ....

The Baht is going to fall like birdshit! Prepare accordingly.

Yahoo!

[bonobo]

Notwithstanding the US people will be the losers with a very strong dollar. eg. The cost of exported vehicles will be another nail in the coffin of an already troubled industry. The Europeans, Airbus Industries and the like must be laughing from the roof tops.

Maybe your point is valid, but the example is not. Other than a few Harley Davidsons with lots or parts made overseas, and the occasional Lincoln limousine, there are very few vehicles exported from the USA. You see very few Mercury or Pontiac saloons in Yorkshire or Madrid. I bet Kybota exports more tractors than Caterpillar does.

I don't know whether Kybota exports more than Caterpillar or not, but Caterpillar is still one of the USA's major exporters. The US is the world's 3rd largest exporter (China over took it for second last year). The tops exports in terms of value are nuclear power plants, followed by electrical machinery, vehicles, airplanes, and medical equipment. With the weak dollar, the US even started to export new products to new markets such as shipping timber to Canada. In volume, the US exports paper (waste and virgin), food, and chemicals in huge numbers of containers. And while GM is not a major exporter, Daimler AG, Toyota, and Ford are. With the rising dollar, while it helps my company here in Thailand, exports will be curtailed. And that will not only affect exports, but decrease demand for US-made products. If Hyundai costs less, how many people will switch from a Saturn for their next purchase?

[VegasVic]

USD is gaining on all currencies.

This has very little to do with Thailand and a whole lot to do with the USA and the global financial crisis. The more uncertain the future looks the more people sell assets and put them in other dollar denominated assets...creating two transactions where dollars are needed (the selling and the buying) increasing the demand for dollars.

One very odd consequence of Wall Street screwing the world over has been they have made the USD surge.

Notwithstanding the US people will be the loosers with a very strong dollar. eg. The cost of exported vehicles will be another nail in the coffin of an already troubled industry. The Europeans, Airbus Industries and the like must be laughing from the roof tops.

If John McCain was going to be ingnaugurated in the 3rd week of January 2009 then I would tend to agree with you to a certian extent as he is a free trader, however we have a guy named Obama that is going to be our next President and between Mr. Obama and the liberal Demacrats that control both houses of Congress you will be seeing some very protectionist legislation coming forward! Its kind of ironic that there was such huge support for Obama over in Europe and yet Obama will be a very bad President for Europoean firms who export to the U.S.

As far as the recent strength (since mid July) of the U.S. Dollar goes, there are a host of reasons for the rise! Lao po has explained one of the primary ones which is the unwinding or "deleveraging" of derivative instuments worldwide which are primarily valued in Dollars. There are a few other reasons the most glaring of which is the fact that the Dollar was allowed to sink in value from 2002 until July 2008, there was a certain artificial element to this dollar crash, despite Mr. Paulson and his predessesor Mr. Snows constant public stance that the Bush administration had a strong Dollar policy, the fact is behind closed doors the administration did everything it could to encourage a weak Dollar so that U.S. exports could increase and keep the growing trade deficit in check. Some of this "Dollar rebound" is just a natural uncoiling of a spring that has been tightly wound for the past 6 years, but the deleveraging aspect was the catayst that set it off. There is also a flight to safety or "safe haven" aspect to the stronger Dollar and this will continue as the recession deepens across the globe and the BOE, EU, and Aussie central bank continue to lower interst rates over the coming months! There is no doubt that the BOT has the ammo to keep the Dollar/Baht in a controlled range, but I think this policy will come to an end over the next few months.

[Lithobid]

Wait until NY markets open next week (Thursday&Friday were holidays) ....

The Baht is going to fall like birdshit! Prepare accordingly.

Yahoo!

I agree with you, according to XE.com we're at 35.62 to the USD today, and I wouldn't be surprised if we saw 38 by early next year. Glad I switched over.

Edited November 29, 2008 by Lithobid

[Kerryd]

Well, according to xe.com now, over a day later, the rate has gone up to 35.78. A whole .16 change.

Kind of curious, with all the turmoil, loss of tourism and commerce, yet the baht isn't tanking.

I've seen the Cdn $ lose almost 20% against the US $ because oil prices dropped for awhile, even though the rest of the economy was still going strong, no political unrest, and no major fall-out from the "sub-prime market melt down". Yet it still dropped.

Meanwhile the baht, although a little bit weaker, has only changed barely 1baht/US $ in over a month (and I think someone mentioned that the Thai stock market went up something like 1.5% after opening today ?).

Amazing Thailand indeed.

[Miami Bob]

I heard a news cast on BBC that said the BOT has unloaded 12 Billion USD over the past year which they said is the reason the Baht has dropped very little against the dollar during this crisis. I'm not really that up on the complex way the currency market works but I was under the impression that unloading the USD was to keep the Baht from rising any further to help exports and tourism.

[cclub75]

I heard a news cast on BBC that said the BOT has unloaded 12 Billion USD over the past year which they said is the reason the Baht has dropped very little against the dollar during this crisis. I'm not really that up on the complex way the currency market works but I was under the impression that unloading the USD was to keep the Baht from rising any further to help exports and tourism.

Everything is here :

http://thaicrisis.wordpress.com/2008/11/26...rency-reserves/

charts and figures.

The explanation of the BBC is very... short. Many countries unload USD (like Russia for instance, big time)... and it doesn't stop their currency to plunge.

[stelen123]

US dollar rises to new multi-month high against Thai baht

The US dollar edged higher to 35.42 against the Thai baht at 10:50 pm ET Wednesday.

This set the highest point for the pair since February 2007.

If the dollar-baht pair gains further, 35.8 is seen as the next target level. The pair closed yesterday's North American session at 35.27.

Source: Nasdaq - 27 November 2008

My question is, why is the Baht still very strong against the GBP, Euro etc?

[permanent_disorder]

US dollar rises to new multi-month high against Thai baht

The US dollar edged higher to 35.42 against the Thai baht at 10:50 pm ET Wednesday.

This set the highest point for the pair since February 2007.

If the dollar-baht pair gains further, 35.8 is seen as the next target level. The pair closed yesterday's North American session at 35.27.

Source: Nasdaq - 27 November 2008

My question is, why is the Baht still very strong against the GBP, Euro etc?

both your hands up in front, 2 fists, one thumb up one thumb down. now move the thumbs down hand to the ground. found the euro?

[who]

It's not before time that the markets saw through the crap that is going on here at the moment. Or is it the BOT has finally run out of the USD it's been using to artificially prop up the Baht?

..............As of the end of Oct the BOT had about US $ 100 Billion in reserves as compared with 30 billion a year or so ago.

.

[nikster]

thanks for that, i see said the blind man. headline, looking at a again, is misleading.

How is it misleading? The USD is at a 21 month high against the Baht. Are you taking offense at the word "soars"? I agree that soars is the usual journalistic hyperbole, particularly since the UDS has dropped dramatically against the THB (and others) in the last 5 years and even now, after all that soaring is nowhere near its highs from back then.

It's getting more interesting now mainly because the EUR is getting less interesting. And maybe because currency speculation is going out of fashion fast.

[tropo]

The baht is doing nicely against the USD (losing!)

Here's a good way to see the trading over the last 5 days. It's shot up considerable already today, with the last trade at 35.83

There really is a good change it will push through the 36 mark to day.

[Kerryd]

The baht is doing nicely against the USD (losing!)

Here's a good way to see the trading over the last 5 days. It's shot up considerable already today, with the last trade at 35.83

There really is a good change it will push through the 36 mark to day.

The graph looks great, until you realise that the difference over the last 5 days is only .6 baht to the dollar. I've seen it swing more than that in a single day's activity during more "normal" time.

Over the last 5, almost 6 weeks now, it has dropped a fair bit though from 34.2 to 35.77 a few seconds ago. So about 1.5 baht over 6 weeks.

While a good sign for foreigners, it still seems pretty stable considering what is going on at the moment.

[Kerryd]

Well, it still doesn't appear that the US $ is "soaring" as the latest rate shows it at 35.69/1.

A week ago it was at 35.62/1.

Nice to see that the Cdn $ has lost ground though, again.

[CPH]

Just wait until the Thai Centralbank runs out of USD, then Thai Baht will fall like a stone. I think 43 to the USD is likely in maybe 6 month.

In 1997 the Thai Baht held up nicely until it suddenly dropped very fast from 25 to 56 to USD.