Thai Baht Weakens On Concerns Over Renewed Violence: BoT

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Baht weakens on concerns over renewed violence: BoT

BANGKOK (TNA) -- The baht has continued weakening because investors are concerned over the renewed violent clashes between the military and anti-government United Front for Democracy Against Dictatorship-led protesters, according to the Bank of Thailand (BoT).

BoT Assistant Governor Suchada Kirakul said foreign investors had apparently begun to sell the baht and remit the dollar home to a certain extent.

Sales of the baht are still proceeding although the volume remains thin, she said.

The spate of political violence overnight has shaken investor confidence. Some sold shares and brought money to invest in other instruments, particularly in bonds.

She said the baht is now considered volatile by itself and in tandem with the global situation, but its volatility is not heavier than that of other regional currencies.

Currency is still moving atn an acceptable level. Although foreign investors sold the baht and purchased dollars to remit money home, earners of incomes in foreign currencies are waiting for the perfect timing to sell the dollar, resulting in a balancing of the currency movement.

On a comment by a top economist that the baht was very likely to touch 31.5 to the dollar at year-end, Mrs. Suchada said the currency had both strengthened and weakened.

Although Thailand has experienced internal and external difficulties, its economy continued growing partly because of the global economic recovery.

She revealed the BoT’s Monetary Policy Committee earlier wanted to see the policy interest rate return to the normal level, but its hope was dashed by the current political crisis. (TNA)

-- TNA 2010-05-15

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[MacWalen]

Weakening of the Thai Baht can be a good thing for exports and tourism. Thailand became a lot more expensive than a few years ago.

[Forkinhades]

I did not know they traded currencies at the weekend

[rogercw]

"On a comment by a top economist that the baht was very likely to touch 31.5 to the dollar at year-end, Mrs. Suchada said the currency had both strengthened and weakened."

Nothing like an official who will firmly commit herself.

[fredob43]

If the baht's weakened, then thank Buddha, because otherwise we'd be seeing the Pound at around 42!

The way the Euro economy is at the moment. (Free fall) And that include's the pound. I think in a few month's you would be wishing you could get 42..... Why, the Euro has lost over 20% in the last few week's and the pound is not far behind. I predict the Euro and the pound will lose another 10% within the next two/three month's. Buddha might help some of us, the rest will have to leave. One good thing is the airport is still open.

[h90]

Weakening of the Thai Baht can be a good thing for exports and tourism. Thailand became a lot more expensive than a few years ago.

For tourism

[bobonzo]

thank goodness....i long for the days of 42 to the dollar

[Yunnie]

I hope it weakens soon, I need to exchange some $100 to pay for dorm and classes... REAL soon. I want something better then $1 to 31฿.

What is it at right now inside Thailand?

[RubbaJohnny]

Odd Siam in chaos yet baht stronger against Pound Euro and Dollar than for years

Says somethoing about the state of western economies

HK RMB andOz $ holding up so far

[robblok]

If the baht's weakened, then thank Buddha, because otherwise we'd be seeing the Pound at around 42!

The way the Euro economy is at the moment. (Free fall) And that include's the pound. I think in a few month's you would be wishing you could get 42..... Why, the Euro has lost over 20% in the last few week's and the pound is not far behind. I predict the Euro and the pound will lose another 10% within the next two/three month's. Buddha might help some of us, the rest will have to leave. One good thing is the airport is still open.

I had to raise my prices good thing my clients accepted that so i don't take too much of a loss. Still its never fun.

[tijnebijn]

The baht is overvalued , should be 36 to the dollar .

Then the rapid drop of the euro to the dollar to probably 1.10 still will give almost 40 to the Thai baht .

Fair value in my opinion , good for Thai exporters , business with Europe will not be affected too much ,

and we expats will still spend our foreign exchanges in Thailand not to speak even about foreign tourists

wo will come back don't come into a shock when they all want to come holidaying here .

What is so difficult for holding back BOT ?

Edited May 15, 2010 by tijnebijn

[bob6023]

thank goodness....i long for the days of 42 to the dollar

Man I was wondering what the he_l was holding it up.. come on 42.

[somtampet]

Hope so as i will have to transfer about 8,000 gbp from my stocks and shares soon,keeping my fingers crossed

[stingray]

Hope so as i will have to transfer about 8,000 gbp from my stocks and shares soon,keeping my fingers crossed

all this wining about a weaker bath. When i cam here, the bat was 25 against the dollar. When bat is waeker, you'll pay more for petrol, so transport cost comes higher and almost for every items, specialy the imported items sold in Thailand, will getting more expesive. So there is no benefits and i quite sure al the landlosrts will increase their rents as we., just to use a excuse. Some peaple work living here for a while and if they decide to go back to Eruope, they will sell their Houses or cars and they will lose money when the Baht is weaker.

[GM1955]

When I first came to Thailand it was 25 to a Dollar and 41 - 42 for a Pound.

Later the pound was in the 36 - 37 Baht range whilst the dollar was still 25 being the baht was pegged to the USD currency at that time.

That was nearly 20 years ago, so many people have retired to Thailand more recently, when the GBP was 70's and USD was mid 40's and based their income on those rates and are now struggling, it's a hard pill to swallow, but some will not have the amount of pension required to remain in Thailand on a retirement visa, if they rely on Pension alone.

Good luck to all.

[roamer]

If the baht's weakened, then thank Buddha, because otherwise we'd be seeing the Pound at around 42!

The way the Euro economy is at the moment. (Free fall) And that include's the pound. I think in a few month's you would be wishing you could get 42..... Why, the Euro has lost over 20% in the last few week's and the pound is not far behind. I predict the Euro and the pound will lose another 10% within the next two/three month's. Buddha might help some of us, the rest will have to leave. One good thing is the airport is still open.

Take a look around.

[wlcart]

Sorry guys currency is not driven by historical rates.

Thinking that the baht should be 36 because it was once 40 is not how it works. There are some real economic forces behind currency, not simple nostalgic memories.

And don't forget, some people make money in baht, in which case, they want it to be strong.

[truthfulfox]

thank goodness....i long for the days of 42 to the dollar

Man I was wondering what the he_l was holding it up.. come on 42.

the summer of 2004 , the US $ was 42 exactly. that was parties time.

Edited May 15, 2010 by truthfulfox

[moetownblues]

Weakening of the Thai Baht can be a good thing for exports and tourism. Thailand became a lot more expensive than a few years ago.

For tourism

Yes bullet proof vests and helmets will be cheaper, Hotels are offering 75% discounts. Thai airways have even drastically cut thier prices. Your travel insurance will be a waste of money tho.

[ozzieman05]

"On a comment by a top economist that the baht was very likely to touch 31.5 to the dollar at year-end, Mrs. Suchada said the currency had both strengthened and weakened."

Nothing like an official who will firmly commit herself.

In Thailand There are three kinds of economists, those who can count and those who can't.

[Abrak]

The baht is overvalued , should be 36 to the dollar .

Then the rapid drop of the euro to the dollar to probably 1.10 still will give almost 40 to the Thai baht .

Fair value in my opinion , good for Thai exporters , business with Europe will not be affected too much ,

and we expats will still spend our foreign exchanges in Thailand not to speak even about foreign tourists

wo will come back don't come into a shock when they all want to come holidaying here .

What is so difficult for holding back BOT ?

It is quite possible that you are a moron.

You clearly havent the vaguest clue about the BoT's intervention in the forex market that can be clearly seen in their balance sheet. You also dont even give a fundamental view why the baht is overvalued - largely because the baht's value is near equilibrium at best and undervalued considerably at worst.

By fundamentals I refer to the current a/c, fiscal position, PPP, forex reserves etc.

[Stjohnm]

When I first came to Thailand it was 25 to a Dollar and 41 - 42 for a Pound.

Later the pound was in the 36 - 37 Baht range whilst the dollar was still 25 being the baht was pegged to the USD currency at that time.

That was nearly 20 years ago, so many people have retired to Thailand more recently, when the GBP was 70's and USD was mid 40's and based their income on those rates and are now struggling, it's a hard pill to swallow, but some will not have the amount of pension required to remain in Thailand on a retirement visa, if they rely on Pension alone.

Good luck to all.

The 97 crash in Asia gave an unusual look to the exchange rates, strong currencies all round would probably see the pound in the high 50's to low 60's and the dollar in the in the mid to high 30's. We are going through a reversal of the events of 13 years back and the west is suffering while Asia is the 1st region to come out of recession.

Edited May 15, 2010 by Stjohnm

[cdnmatt]

That was nearly 20 years ago, so many people have retired to Thailand more recently, when the GBP was 70's and USD was mid 40's and based their income on those rates and are now struggling, it's a hard pill to swallow, but some will not have the amount of pension required to remain in Thailand on a retirement visa, if they rely on Pension alone.

My opinion is, that has nothing to do with the Thai baht, but piss poor money management throughout their lives. Really, if people can't afford to survive in Thailand because the baht went up a couple points, how do they ever expect to survive in England?

I don't mind if the baht goes up a bit here and there, because regardless, living in Khon Kaen is a WHOLE lot cheaper than living in downtown Vancouver. Although I will admit, Thailand isn't some cheap paradise to live in, like many people seem to think. It still costs a decent penny to live a good standard of living.

Edited May 15, 2010 by cdnmatt

[BigWheelMan]

I hope the baht crashes through the ground at the speed of light.

Come mon U Reerrrreds.

[ESB7]

That was nearly 20 years ago, so many people have retired to Thailand more recently, when the GBP was 70's and USD was mid 40's and based their income on those rates and are now struggling, it's a hard pill to swallow, but some will not have the amount of pension required to remain in Thailand on a retirement visa, if they rely on Pension alone.

My opinion is, that has nothing to do with the Thai baht, but piss poor money management throughout their lives. Really, if people can't afford to survive in Thailand because the baht went up a couple points, how do they ever expect to survive in England?

I don't mind if the baht goes up a bit here and there, because regardless, living in Khon Kaen is a WHOLE lot cheaper than living in downtown Vancouver. Although I will admit, Thailand isn't some cheap paradise to live in, like many people seem to think. It still costs a decent penny to live a good standard of living.

75 down to 46 against £ is almost a 40% drop, add that to all time low interest rates and it isnt 'piss poor money management' as you so elequently put it.

Example 2006

£200,000 at a rate 5.3% after 20% tax deducted = £10,600

10,600 x 75 = 795.000/12 = 66,250 baht a month

2010

£200,000 at a rate of 2.3% after tax deducted = £4,600

4,600 x 46 = 211,600/12 = 17,633 baht a month.

Hardly a couple of points but this is the reality many English are facing.

[Forkinhades]

That was nearly 20 years ago, so many people have retired to Thailand more recently, when the GBP was 70's and USD was mid 40's and based their income on those rates and are now struggling, it's a hard pill to swallow, but some will not have the amount of pension required to remain in Thailand on a retirement visa, if they rely on Pension alone.

My opinion is, that has nothing to do with the Thai baht, but piss poor money management throughout their lives. Really, if people can't afford to survive in Thailand because the baht went up a couple points, how do they ever expect to survive in England?

I don't mind if the baht goes up a bit here and there, because regardless, living in Khon Kaen is a WHOLE lot cheaper than living in downtown Vancouver. Although I will admit, Thailand isn't some cheap paradise to live in, like many people seem to think. It still costs a decent penny to live a good standard of living.

75 down to 46 against £ is almost a 40% drop, add that to all time low interest rates and it isnt 'piss poor money management' as you so elequently put it.

Example 2006

£200,000 at a rate 5.3% after 20% tax deducted = £10,600

10,600 x 75 = 795.000/12 = 66,250 baht a month

2010

£200,000 at a rate of 2.3% after tax deducted = £4,600

4,600 x 46 = 211,600/12 = 17,633 baht a month.

Hardly a couple of points but this is the reality many English are facing.

Thats why I prefer to have an income, rather than capital

[iciparis]

Thai bath weakened??

how come I got less then yesterday for my Euro???

[Thaihog]

The Thai baht will only get weaker if there is a deficit between the exports and the imports.

At present there is a surplus so the govt can afford to strengthen the baht. Hopefully as this years drought effects rice exports and other agricultural crops the baht will come under pressure. AIMHO.....

[bwalker1973]

If the baht's weakened, then thank Buddha, because otherwise we'd be seeing the Pound at around 42!

You will be seeing that very shortly within the next few weeks, becaus eof the european debt burdens.

[bwalker1973]

I did not know they traded currencies at the weekend

4am Thai Time monday morning currency markets open.