US Dollar Soars To 21-Month High Against Thai Baht

[jdinasia]

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.

Huh? in 1997 it was pegged to the USD and then floated (and hit 83 once I think)

[Journalist]

^You think wrong.

55-ish was the top.

[CPH]

Bach the there were mejor speculation against the Thai Baht. Maybe the speculators have not paid attention to the strength of the Baht yet.

[LaoPo]

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.

Huh? in 1997 it was pegged to the USD and then floated (and hit 83 once I think)

Incorrect.

The Baht was pegged to the US$ since the end of WWII until 1980 at a rate of Baht 20 to the $.

Because of a strengthening US economy is was decided to repeg the Baht to 25 for a dollar in 1985. This lasted until July 1997 when the financial crisis hit Thailand; after that the Baht was floated and halved in value. Lowest was 56 to a dollar in Jan. '98.

I see the Baht go down within a year...sharp. It has to go down will the country be able to survive.

Commodities (rubber, fruit, rice etc.) are so cheap now that exports are impossible and drying out. The automobile/motobike industry will suffer badly and lay-offs will run into the many thousands including in the supplying industry.

The three major rubber countries Thailand, Malaysia and Indonesia are cutting dramatically into their rubber trees to avoid over supply.

Rubber demand is sliding enormous.

The Baht HAS to go down, one way or another.

LaoPo