Thai Baht Appreciates To Highest Level In 9 Months

[Jai Dee]

BAHT APPRECIATE TO THE HIGHEST LEVEL IN 9 MONTHS OVER THE PAST WEEK, AND THE BOT HAS YET TO INTERFERE

The baht value has appreciated to the highest level in nine months over the past week, at 39.15 baht per US dollar, with foreign capital and the R/P rate adjustment as supporting factors.

Kasikorn Research Center reported that most commercial banks now operate at the new interest level after the Bank of Thailand raised the 14-day bond repurchase rate (RP) by a quarter-point to 4.25%. Over last week the baht first depreciated against the dollar following the depreciation of the yen and also the short-term selling of the baht for profit, in addition to the downward adjustment of the Thai stock market. However, later in the week the baht appreciated against the dollar despite the yen still on a weakening trend. The research center said this was contributed to by the inflow of foreign capital into the Thai stock market during the period.

The Bank of Thailand meanwhile has yet to interfere with the Thai currency.

Source: Thaisnews.com ประจำวันจันทร์ที่ 23 มกราคม 2549

[GuestHouse]

Probably because a number of politicos have not yet secured enough foreign currencies.

[Meerkat]

I think you'll find it's because of Temasek's purchase of the Shin Corp stake - at least that's what my Bloomberg told me...

[BKK90210]

I thought the BATH has always been peg to the DOLLAR in the world currency market.

So far to my knowledge the US deficits had some thing to do with this rising value of the world currency. More imports...higher trade deficits,...VS... more exports..less trade deficits. For the last few years, escpecially the US deficit's number have gone though the roof. One way to reduce the number in the trade deficits is to devalued the dollar, therefore making the US goods far more cheaper than before for the export purpose. Seem to me the US government has been doing these.

Just my thought

[barryofthailand]

The reason is because the dollar has gotton weaker. If you look at the history the past few years the dollar for sdome reason weakens this time of year and starts getting stronger in May June.

Barry