Baht Continues To Strengthen

[george]

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

[~G~]

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

<{POST_SNAPBACK}>

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

[loong]

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

<{POST_SNAPBACK}>

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

<{POST_SNAPBACK}>

Who do you mean by everyone?

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

[samran]

Don't understand it....inflation is pretty high in LOS vis a vis the US, so it would suggest that the baht should be weakening.

Me thinks that the BOT is quietly buying up baht.

[britmaveric]

Bht strengthening? You should know better than believe that.

[TRIPxCORE]

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.

[Heng]

I think many people were wishing it to go to 50. I certainly was and still am.

[britmaveric]

Well if you look at trends - its been pretty much stable over the course of years.

[Heng]

Stable or not, it's been pretty sweet from 1997-2005.

[loong]

Actually, is it a case of the Baht strengthening or the dollar weakening? I would plump for the latter.

The Baht has weakened against the British Pound recently.

[Steve2UK]

Actually, is it a case of the Baht strengthening or the dollar weakening? I would plump for the latter.

<{POST_SNAPBACK}>

A bit of both, I think - the pound dropped 2 cents today (12th) but dropped only 1 baht.

http://www.exchangerate.com/charts.html?le...8&action=Submit

Edited September 13, 2005 by Steve2UK

[TRIPxCORE]

Actually, is it a case of the Baht strengthening or the dollar weakening? I would plump for the latter.

The Baht has weakened against the British Pound recently.

Good question. Its dollar weakness.

[~G~]

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

<{POST_SNAPBACK}>

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

<{POST_SNAPBACK}>

Who do you mean by everyone?

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

<{POST_SNAPBACK}>

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.

[Firefan]

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.

[Joey Boy]

The Baht has weakened against the British Pound recently.

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

[loong]

The Baht has weakened against the British Pound recently.

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

<{POST_SNAPBACK}>

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

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.