Baht V Sterling

[sungod]

Anybody any ideas why with the current poltical turmoil in the country, the baht is so strong against the pound / other currencies?

[Upcountry]

Yeah, c'mon, with all this uncertainty over to coup or not to coup I'd sure like to get a better (40+) baht rate for a change!

I guess foreign investors still have confidence in TRT, regardless of politics and the good of Thailand. Money is money, and investors still seem to see a good opportunity with Mr. Sell-out-as-long-as-I-get-a -piece-Taxavoidin!

[cclub75]

Anybody any ideas why with the current poltical turmoil in the country, the baht is so strong against the pound / other currencies?

It's a mystery. Another thread here spoke about "seasonal effects" : I don't believe it.

I think it's linked with the sale of Shin. Temasek had completed the tender offer. They gave 1.8 billions USD to Thaksin family for 50 % of the shares (january), and then they spent another 1.8 billions to buy the remaining 50 % (ended last week) on the stock market.

Total : almost 4 billions USD equivalent in THB were injected in the country in 2 month.

http://www.oanda.com/convert/fxhistory

The THB started to gain by the end of december, versus all currencies.

So the logic : THB should "crash" sooner or later = back to "normal".