Thai Baht Nears 22-month High

[george]

Baht nears 22-month high

The baht currency traded near a 22- month high, trading at 32.29 per U.S. dollar 10 a.m. Friday compared to 32.38 yesterday

The baht may weaken on concerns the ongoing political unrest could lead to funds outflows.

-- The Nation 2010-04-09

Related link:

Latest Baht Exchange rates:

http://baht.thaivisa.com

[Ayutthaya69]

i dont understand why the Thai Baht still strong

[rogerdee123]

i dont understand why the Thai Baht still strong

Stock Market also hasn't seemed to have been affected by the political mess either ... although I haven't yet looked today.

[Guest]

In any other country with these problems, demonstrators getting free reign, tourists cancelling, major stores closed, economy wrecked, the currency would be dropping like a stone. The reason for its strength is quite clear to anyone.

[JacknDanny]

i dont understand why the Thai Baht still strong

Its being supported by Thai Central Bank.

[Ayutthaya69]

i dont understand why the Thai Baht still strong

Stock Market also hasn't seemed to have been affected by the political mess either ... although I haven't yet looked today.

annyway if its happen on your country i think your currency will dropped excepted here Thailand lol

[Ayutthaya69]

In any other country with these problems, demonstrators getting free reign, tourists cancelling, major stores closed, economy wrecked, the currency would be dropping like a stone. The reason for its strength is quite clear to anyone.

yes Pauln i agree whit you so why Thailand its different to other country maybe the export doing good

[rreddin]

i dont understand why the Thai Baht still strong

Stock Market also hasn't seemed to have been affected by the political mess either ... although I haven't yet looked today.

From information I have seen on the BBC's web site, foreign ivestors have factored the political turmoil into the price of Thai stocks and the exchange rate. They think that the "elites" will win in the short-term" and that the economy will continue to do well in the short-term. Their medium-term view, predicated by the innevitable happening to a venerable person about whom we may not speak, is not so rosy.

While all this may be good news for foreign investors and currency speculators, at least in the short-term, it is not so good for the motor industry and other exporters or the tourist industry. The strong Bhart makes Thailand an expensive country to visit for a vacation and an expensive country to get to. None of the "Western" economies are doing well - people there are just not spending money on discretionary purchases like they used to. Australia may be the exception, but there are too few visitors from the largest island in the Pacific to make much of a difference. Thai exports are becoming less competitive. To put it another way, those trans-national companies that established assembly/production plants in Thailand because of the cheap labour and favourable exchange rates might soon be rethinking their strategies.

The strong Bhart is costing jobs, but consider what the exchange rate might be if there was political stability.

[Microwave]

The $US has been weakening & strengthening for some time, and now it seems to be weakening again. The financial mess in Greece and other EU countries has caused the Euro to also weaken. The Sterling isn't strong either.

I don't know if expectations for the Chinese RMB comes into play, but expectations are that the People's Bank of China will again let the RMB trade within a wider range, with the likely result being an appreciation of the RMB. Perhaps the Baht is strengthening just because Thailand's in the same neck of the woods as China and has strong trade ties with China. Therefore if the RMB appreciates, so will other currencies in the region.

Just some possible explanations, but I'm actually just as confused as everyone else!

[thom22]

Sorry but can i just ask a hypothetical to people who know about currency, would it change much and how if... 1 - reds come to power? 2 - Thaksin some how became PM again?

Edited April 9, 2010 by thom22

[tonititan]

The baht currency traded near a 22- month high, trading at 32.29 per U.S. dollar 10 a.m. Friday

Sweet, time to go transfer some money back home!

[Skywalker69]

i dont understand why the Thai Baht still strong

Count me in

[givenall]

i dont understand why the Thai Baht still strong

Stock Market also hasn't seemed to have been affected by the political mess either ... although I haven't yet looked today.

If you away about 1000 meter from the protest area, nothing Is happening. The Reds don’t exist and everything is like normal. I think the Red Shirts are invisible now and no one cares about them.

May be that is why

[Guest]

i dont understand why the Thai Baht still strong

Count me in

Intervention/Manipulation

[jackinthebox]

In any other country with these problems, demonstrators getting free reign, tourists cancelling, major stores closed, economy wrecked, the currency would be dropping like a stone. The reason for its strength is quite clear to anyone.

The Baht WILL drop - strange volatility of currencies or stock markets ist a sign of near plump (like in Greece, Iceland or... :-)

[junkofdavid2]

Maybe someone from overseas is using huge foreign wealth (i.e. selling foreign currency) in order to "buy" baht (i.e. demand for baht) in order to "distribute" that baht in Thailand?

[millwall_fan]

i dont understand why the Thai Baht still strong

Stock Market also hasn't seemed to have been affected by the political mess either ... although I haven't yet looked today.

annyway if its happen on your country i think your currency will dropped excepted here Thailand lol

I think you're trying to say T.I.T.!! Thanks for that

Why is the Central Bank supporting the currency when the Finance minister recently said it was his policy to gradually weaken the baht? He needs to have a chat with the central bank governor!

[Fred Sanford]

Maybe someone from overseas is using huge foreign wealth (i.e. selling foreign currency) in order to "buy" baht (i.e. demand for baht) in order to "distribute" that baht in Thailand?

Protestor payoff explains it sure

[JimsKnight]

Thailands a nationalist country remember and it can and does feather its own nest by spending money on the country, not on things outside the country...

[peter991]

Thailands a nationalist country remember and it can and does feather its own nest by spending money on the country, not on things outside the country...

In Australia, we would call that xenophobia ... I would really like to find a website with up to date information on Thailand's Balance of Payments - how self-sufficient really is Thailand?

I am amazed that the AUD (Australian dollar) is now 92.7c against the USD (US dollar), but I still can only get 29.8 THB (Thai baht) for $AUD1.

Peter

UPDATE: Latest info on Thailand's balance of payments here: http://www.boi.go.th/english/how/business.asp

Edited April 9, 2010 by peter991

[12DrinkMore]

I am amazed that the AUD (Australian dollar) is now 92.7c against the USD (US dollar), but I still can only get 29.8 THB (Thai baht) for $AUD1.

That seems about right. Why are you amazed???

The current USD exchange rate is 32.15 and the AUD 29.75

http://www.scb.co.th/scb_api/index.jsp

That equates to AUD/USD of 0.925. Where is the amazement?

As has already been stated the Asian economies are going well. Thailand has a trade surplus and massive foreign currency reserves. They have been trying to hold down the value of the THB and keep it in line with a basket of other Asian currencies. It is obvious that the Yuan is also undervalued against the USD and is being held down against the USD. If the Chinese allow the Yuan to move in a wider band, then expect to see the THB with other Asian currencies move up against the Western debtor nations.

In Australia, we would call that xenophobia ... I would really like to find a website with up to date information on Thailand's Balance of Payments - how self-sufficient really is Thailand?

I think that the link you posted http://www.boi.go.th/english/how/business.asp indicates very well how self sufficient Thailand is. The answer is Thailand is doing extremely well, even if a large number of westerners haven't quite grasped the concept that a "third world developing country" is managed more efficiently and productively than their own debt ridden disasters.

And the other comment above about "feathering the nest" is absurd beyond comprehension.

Edited April 9, 2010 by 12DrinkMore

[madi]

I am no genius on Currency but I have made a little coin on it in my time.

My biggest profits in markets of all kinds have been made shorting on extreme highs. Of course buying after a crash too is very profitable but much more risky. After all, recoveries can take a log time or may not occur at all.

The Thai Baht?

I would not be short or long on it now.

BUT--if the worst happens and there is violent revolution, the baht could go to 60 VS USD or even get weaker.

I would be a buyer of the Thai baht at 60 or 70.

WHY? I always like buying at extreme lows.

But again, for now, I am not interested in any investments in Thailand.

I certainly do not trust my money there.

P.S.

Foreigners who are not working but live in Thailand would love the baht to collapse.

Those foreigners being paid in Baht would hate it.

[Deeral]

As the baht is still increasing in value despite the political problems and has been stable for a long time now I'd not expect ay great dips or highs.

Look back at the baht's behaviour after the last coup.

the truth is that no matter who is running the country there is very little to choose on fiscal policies and it is the elite in business who run the currency.

[Heng]

From one exporter's point of view, not a single customer has even asked a question about political stability. Business as usual.

[Tigs]

How come in any other country on the planet, that even a sniff of domestic conflict, revolution, military coup etc will cause a loss of confidence and the currency nose dives. But oh no, not Thailand. Jeez, give us a break!

[TheItaliann]

You guys don't understand currency exchange.

Here is a good starting point: Click Me

Best case scenario, if there are no natural disasters, terrorist attacks, real estate crashes, stock market crashes, unexpected expenditures from new health care bills, if absolutely everything goes as planned, the US gov will be paying 50% of its tax revenue towards interest payments on its debt in ten years.

Think about that a bit.

Well, you probably didn't make it through my post. You should have, instead you probably opened another sin sot thread and cracked another Singha, even though your belly really could use a break. It won't be long until you and many of your kind are starting threads about how "Don't the dumb Thais know that 25 baht to a dollar hurts tourism?" and "Gold? Why is it so expensive? It looks tacky".

Edited April 9, 2010 by TheItaliann

[palm]

I think that the link you posted http://www.boi.go.th/english/how/business.asp indicates very well how self sufficient Thailand is. The answer is Thailand is doing extremely well, even if a large number of westerners haven't quite grasped the concept that a "third world developing country" is managed more efficiently and productively than their own debt ridden disasters.

Yes, it's basic economics at work.

More money flowing into Thailand, than is going out. See the recent performance of the SET with huge influxes of foreign money recently, plus Thailand's balance of payments etc and it's easy to understand the baht level.

[Tigs]

You guys don't understand currency exchange.

Here is a good starting point: Click Me

Best case scenario, if there are no natural disasters, terrorist attacks, real estate crashes, stock market crashes, unexpected expenditures from new health care bills, if absolutely everything goes as planned, the US gov will be paying 50% of its tax revenue towards interest payments on its debt in ten years.

Think about that a bit.

Well, you probably didn't make it through my post. You should have, instead you probably opened another sin sot thread and cracked another Singha, even though your belly really could use a break. It won't be long until you and many of your kind are starting threads about how "Don't the dumb Thais know that 25 baht to a dollar hurts tourism?" and "Gold? Why is it so expensive? It looks tacky".

The first part of your post is good, then we get to the last part! Now that makes you out to be a complete and utter tool. Hey Italiann, do you know much about changing an aircraft engine or running an oil rig, perhaps mining 2 miles down for precious metels, maybe how to cook the perfect fillet steak or manage a workforce of 4000? Well if you don't there are a lot of people on Thai Visa that do, and if you asked a question about those skills, they wouldn't be calling you a fat bellied f**kwit, they would give you a straight answer. You claim to know about currency exchange, well good for you, but If you cannot reply without recourse to being offensive and considering those not in the know as stupid then go and crawl under your rock some other place eh!

[12DrinkMore]

You guys don't understand currency exchange.

Here is a good starting point: Click Me

Best case scenario, if there are no natural disasters, terrorist attacks, real estate crashes, stock market crashes, unexpected expenditures from new health care bills, if absolutely everything goes as planned, the US gov will be paying 50% of its tax revenue towards interest payments on its debt in ten years.

Think about that a bit.

Well, you probably didn't make it through my post. You should have, instead you probably opened another sin sot thread and cracked another Singha, even though your belly really could use a break. It won't be long until you and many of your kind are starting threads about how "Don't the dumb Thais know that 25 baht to a dollar hurts tourism?" and "Gold? Why is it so expensive? It looks tacky".

Nice one.

Just cracked open another Singha. And I totally agree with you.

There are just so many Westerners who simply haven't cottoned on to the BIG PICTURE and think that they have a right to cheap holidays in paradise. Sorry guys, the party is coming to an end. The bills have to be paid. The over developed western countries, with over developed social welfare, over developed governments, over developed real estate bullshit now have to come to terms with the reality that none of this is affordable and a lot cannot even be paid for, it was all purchased on the "never never". The Asian countries have been funding the debt saddled consumers of the West.

So the press is reporting an "economic recovery" in the west?? Yeah, sure, they are just pissing in the wind. A bit goes forward but the rest ends up running down your leg.

Just stop thinking that your Western country is superior and then look at what is happening in Asia. If you cannot see the incredible rate of development then you are blind. Every day I see new buildings, factories, shops opening up, private industry is booming and the government keeps out of the way. In the West all I see are increasing restrictions, policing, social benefits and pandering to the minorities. And all the costs pushed onto the backs of the helpless tax payers.

Asia is big enough to support itself without the West. There is a huge potential for development.

Before I get too carried away on the froth of my Singha, look at the education system. Engineering and science under graduates are dominated by Asian students, the western students somehow find "history of art" and such bullshit easier and more "fulfilling". Yeah, great, that'll get you a good job in politics.

To be honest, I resent the number of pensioners/holidaymakers out here who think they have a right to screw the local girls for a pittance and stride around thinking they are god's gift to the Asian economies. I hope that the western currencies fall to a level where this is no longer affordable and that the Asians can earn more by getting educated and working in a "normal" job.

[yoshiwara]

You guys don't understand currency exchange.

Here is a good starting point: Click Me

Best case scenario, if there are no natural disasters, terrorist attacks, real estate crashes, stock market crashes, unexpected expenditures from new health care bills, if absolutely everything goes as planned, the US gov will be paying 50% of its tax revenue towards interest payments on its debt in ten years.

Think about that a bit.

Well, you probably didn't make it through my post. You should have, instead you probably opened another sin sot thread and cracked another Singha, even though your belly really could use a break. It won't be long until you and many of your kind are starting threads about how "Don't the dumb Thais know that 25 baht to a dollar hurts tourism?" and "Gold? Why is it so expensive? It looks tacky".

Nice one.

Just cracked open another Singha. And I totally agree with you.

There are just so many Westerners who simply haven't cottoned on to the BIG PICTURE and think that they have a right to cheap holidays in paradise. Sorry guys, the party is coming to an end. The bills have to be paid. The over developed western countries, with over developed social welfare, over developed governments, over developed real estate bullshit now have to come to terms with the reality that none of this is affordable and a lot cannot even be paid for, it was all purchased on the "never never". The Asian countries have been funding the debt saddled consumers of the West.

So the press is reporting an "economic recovery" in the west?? Yeah, sure, they are just pissing in the wind. A bit goes forward but the rest ends up running down your leg.

Just stop thinking that your Western country is superior and then look at what is happening in Asia. If you cannot see the incredible rate of development then you are blind. Every day I see new buildings, factories, shops opening up, private industry is booming and the government keeps out of the way. In the West all I see are increasing restrictions, policing, social benefits and pandering to the minorities. And all the costs pushed onto the backs of the helpless tax payers.

Asia is big enough to support itself without the West. There is a huge potential for development.

Before I get too carried away on the froth of my Singha, look at the education system. Engineering and science under graduates are dominated by Asian students, the western students somehow find "history of art" and such bullshit easier and more "fulfilling". Yeah, great, that'll get you a good job in politics.

To be honest, I resent the number of pensioners/holidaymakers out here who think they have a right to screw the local girls for a pittance and stride around thinking they are god's gift to the Asian economies. I hope that the western currencies fall to a level where this is no longer affordable and that the Asians can earn more by getting educated and working in a "normal" job.

I'm afraid that a lot of your contribution really does appear to be booze-induced.

One comment to pick up on is the reference to science and engineering graduates.

Yes, the focus in Eastern economies is commendable.

Unfortunately a lot of the learning is rote learning and many of the graduates are marginally employable.

In fact it is the softer managerial skills which are in short supply and this is where many expats come in.

An understanding of critical evaluation is not so easy to teach in a rote learning environment.

And as for your sneering re 'The History of Art', well I'll take a post-grad from the Courtauld Institute over what you are probably offering any day.