Jump to content

Baht Continues To Strengthen


Recommended Posts

Baht continues to strengthen

BANGKOK: -- The baht continued to strengthen and broke through the barrier at 40.90 to the US dollar to stay at 40.86-40.88, the strongest in almost one month, in the morning session, according to a money dealer.

Anirut Pimpun, the money dealer of Bank of Ayudhya Plc, disclosed the continued appreciation of the baht was attributed by the strengthening of the Japanese yen after Japanese Prime Minister Junishiro Koisumi’s ruling party won the election.

He said the strengthening of the baht would boost the investment sentiment in the Stock Exchange of Thailand.

Should the baht break through the resistance level of 40.80 to the dollar, it could appreciate to 40.60.

So, he suggested, exporters should make future contracts to hedge against foreign exchange risks.

--TNA 2005-09-12

Link to comment
Share on other sites


So, he suggested, exporters should make future contracts to hedge against foreign exchange risks.

Why would they, only 2 months ago everyone predicted 50 baht per dollar in a year, what happened now? :o

Who do you mean by everyone?

I have never come across anyone stupid a enough to predict 50 Baht per $ in a year!

Link to comment
Share on other sites

I, for one, never said THB would go to 50! In fact, I never heard anyone say that.

What I have been saying all along is that Asian currencies as a whole, will begin to appreciate vs. USD due to many factors which I laid out for someone here before. This is the start of a long, bumpy road. My money is in Japanese Yen which will benefit directly from any appreciation of Chinese Yuan and has good sentiment attached to it now that Koizumi's ruling party has held court in Japan, which is Yen-positive.

Link to comment
Share on other sites

So, he suggested, exporters should make future contracts to hedge against foreign exchange risks.

Why would they, only 2 months ago everyone predicted 50 baht per dollar in a year, what happened now? :o

Who do you mean by everyone?

I have never come across anyone stupid a enough to predict 50 Baht per $ in a year!

Oh there were many such smart people. But my point is that these furtune tellers (analysts, ministers, etc) have a very simple model of prediction: If the baht is weakening for a few months, they just predict it to be much weaker in a year or two, usually with wild exagarations. If it is strenghening, they predict it will be so much stronger in the future. Then they give these advices to exporters.

The right thing for an exporter/importer to do to protect himself is to make these future contracts, thereby minimizing his risk, regardless of such predictions.

Link to comment
Share on other sites

My humble belief exactly! Most Asian currencies have been artificially kept low (to compeed with China/increase exports Etc.) and we have now started on down the (bumpy) road of stronger Asian currencies.

Just my 2 cents worth. Cheers!

I, for one, never said THB would go to 50!  In fact, I never heard anyone say that.

What I have been saying all along is that Asian currencies as a whole, will begin to appreciate vs. USD due to many factors which I laid out for someone here before.  This is the start of a long, bumpy road.  My money is in Japanese Yen which will benefit directly from any appreciation of Chinese Yuan and has good sentiment attached to it now that Koizumi's ruling party has held court in Japan, which is Yen-positive.

Link to comment
Share on other sites

The Baht has weakened against the British Pound recently.

I've been getting the best rates for 12months in the last 2 weeks :o

Yes Joey, if the Baht weakens against the pound, it means that you will get more Baht for your pounds :D

Good news eh?

If I can get around 75, I think I will move a bit of extra cash over as the Baht always seems to be weakest at this time of year.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.








  • Topics

  • Latest posts...

    1. 0

      17 Arrests Made as Pro-Palestinian Protests Sweep London

    2. 0

      Elon Musk Joins Donald Trump in Rally, Energizes Supporters

    3. 0

      Legal Battle Looms over VAT on Private Schools: Parent’s Fight for Special Needs Education

    4. 0

      The Dark Legacy of October 7 The Terror and Tragedy One Year On

    5. 0

      The U.S. Alliance Dilemma: Hezbollah, Iran, and Russia's Connection

    6. 0

      Could an October Surprise Shift the Deadlocked Trump-Harris Race?

    7. 0

      Putin's Nuclear Threats: Rhetoric or Reality?

    8. 0

      White House Rebukes False Claims Amid Hurricane Helene Relief Efforts

    9. 0

      Spreaders of Conspiracy Theories: Unmasking the Motivations Behind the Lies

    10. 0

      Boris Johnson Suggests Putin Would Have Avoided Invading Ukraine if Trump Were President

    11. 0

      Oklahoma’s Controversial Plan to Purchase 55,000 Bibles for Public Schools

    12. 0

      Menendez Brothers’ Convictions to be Revisited Amid New Evidence & Interest

    13. 0

      India’s Debate on Marital Rape: Government Deems Criminalisation ‘Excessively Harsh’

    14. 0

      Rapid Greening of Antarctica: Scientists Alarmed by Climate Change Impact

    15. 3,549

      President Kamala Harris

×
×
  • Create New...