Thai Baht drops to 30.73 per dollar on back of intimated end of Federal Reserve stimulus.

[Eesat]

Source - Bloomberg's :

"Thailand’s baht and government bonds dropped for a second day as investors focus on this week’s Federal Reserve meeting for an indication of when it may curb stimulus that’s driven demand for emerging-market assets.

Global funds have pulled a net $1.1 billion from Thai bonds since May 22, when Fed Chairman Ben S. Bernanke said $85 billion a month of debt purchases could be reduced should there be a sustained improvement in the U.S. jobs market. The Bank of Thailand can handle capital outflows given the size of foreign reserves, Governor Prasarn Trairatvorakul told reporters in Bangkok yesterday. The holdings stood at $176.5 billion on June 7, up 2.7 percent from a year earlier, central bank data show."

http://www.bloomberg.com/news/2013-06-18/baht-bonds-decline-as-investors-look-to-fed-for-timing-of-curbs.html

It looks like "Helicopter" Ben Bernanke is playing the role of his predecessor,wily old Greenspan in suggesting everything yet confirming and denying nothing!

[boosta]

Sure they can drive the markets in the directions they want without having to actually do anything, just talk about it.

This is a good trend for Thailand's exports.

[David48]

We'll find out on Wednesday night/Thursday morning ... depending on your time zone.

[boosta]

They always make sure there aren't any big surprises, the big banksters know how to read the tea leaves to the hundredths of a point ahead of time.

It will take a lot of psych-pump-priming to let the markets know long before QE2 gets slackened off, and they'll have to scale it down very smoothly, even then it's very risky the underlying main street employment numbers just aren't there, the new normal is permanent recession lifestyles for the common people, nearly all that free Fed money's gone into the paper-based speculation (actually all just bits of data flying around the world now).

House of cards. . .

[infinity11]

How are you best prepared for this house of cards to fall?

Have dollars? Have baht? Debt free? Have physical gold silver, etc...?

Are there not are several indicators not just this one that the BIG ONE is coming soon?

[David48]

Are there not are several indicators not just this one that the BIG ONE is coming soon?

I need more explanation please ...

Thanks

.

[Eesat]

The interbank overnight interest rates used to be the biggest market mover on the Fed's calendar,before global interest rates became a non-story due to historically low interest rates.That honour now falls to the NFPs or Non-Farm Payrolls,the unemployment figures which are announced on the first Friday of each month.
The focus will be in what Ben Bernanke has to say,whether his statement will be hawkish or dovish and if he does indeed call a halt to quantitative easing?Highly unlikely that that will happen at any time this year IMHO.

[YeahSiam]

Fed pulls stimulus, bond market implodes.

[yoshiwara]

How are you best prepared for this house of cards to fall?

Have dollars? Have baht? Debt free? Have physical gold silver, etc...?

Are there not are several indicators not just this one that the BIG ONE is coming soon?

No.

[yoshiwara]

Eesat: 'It looks like "Helicopter" Ben Bernanke is playing the role of his predecessor,wily old Greenspan in suggesting everything yet confirming and denying nothing!'

No he isn't.

[Eesat]

Eesat: 'It looks like "Helicopter" Ben Bernanke is playing the role of his predecessor,wily old Greenspan in suggesting everything yet confirming and denying nothing!'

No he isn't.

He is leaving the Fed and Obama says he's been there longer than he wanted to be!Anyway,tomorrow's rate decision should definitely be interesting!

(Waits for yoshiwara's pantomime villain "No it won't"!)

[Lancelot]

Sure they can drive the markets in the directions they want without having to actually do anything, just talk about it.

This is a good trend for Thailand's exports.

True but its a better party with a strong local currency and consumer driven growth.

[Eesat]

Sure they can drive the markets in the directions they want without having to actually do anything, just talk about it.

This is a good trend for Thailand's exports.

True but its a better party with a strong local currency and consumer driven growth.

I really don't think any country in the world wants a strong currency right now,certainly not export-driven ones like Thailand and New Zealand for instance!

[yoshiwara]

Eesat: 'It looks like "Helicopter" Ben Bernanke is playing the role of his predecessor,wily old Greenspan in suggesting everything yet confirming and denying nothing!'

No he isn't.

He is leaving the Fed and Obama says he's been there longer than he wanted to be!Anyway,tomorrow's rate decision should definitely be interesting!

(Waits for yoshiwara's pantomime villain "No it won't"!)

What rate decision? There is zero chance of a rate change tomorrow.

[yoshiwara]

Sure they can drive the markets in the directions they want without having to actually do anything, just talk about it.

This is a good trend for Thailand's exports.

True but its a better party with a strong local currency and consumer driven growth.

I really don't think any country in the world wants a strong currency right now,certainly not export-driven ones like Thailand and New Zealand for instance!

Just blah.

[Somrak]

One more time a thai scam! Only look at the rates over this days. Some did put fast 3-4 % in there pockets.

Has nothing to do with B.! at all.

Edited June 19, 2013 by Somrak

[garyk]

I agree, the rich get richer the poor get poorer. IMO

Same old thing.

[craigt3365]

So what's the prediction for the next 6 months. I read a report today that the fed won't really do anything in the near term. And when they do, it will be gradual.

[Naam]

One more time a thai scam! Only look at the rates over this days. Some did put fast 3-4 % in there pockets.

Has nothing to do with B.! at all.

you did not put anything in your pocket?

[infinity11]

Possible indicators, yes or no?

The nikkei is down big time, what 20% in three months? , the usa market looks like it topped.

Gold and silver tanking.

Bond sell off?

Huge debt bubbles.

Endless printing of money.

Something big is coming, i hope i am wrong but it is long overdue.

Plus Syria!!!

[Eesat]

One more time a thai scam! Only look at the rates over this days. Some did put fast 3-4 % in there pockets.

Has nothing to do with B.! at all.

The Bank of Thailand,like any Central Bank have little influence over the Foreign Exchange,the world's largest and most liquid financial market,the second biggest business in the world after oil and one that trades USD $4 trillion every 24 hours in volume!

[Eesat]

Possible indicators, yes or no?

The nikkei is down big time, what 20% in three months? , the usa market looks like it topped.

Gold and silver tanking.

Bond sell off?

Huge debt bubbles.

Endless printing of money.

Something big is coming, i hope i am wrong but it is long overdue.

Plus Syria!!!

It's a mess,American markets at record highs due to all the money printing.It's like them all standing on a chair and one day someone is going to kick that chair away,that's when the fun will really begin!

[garyk]

Thinking of buying Baht? Do you think it will get better. For the dollar against the baht that is.

Just a small conversion for a vacation.

I rarely follow this kind of thing. I prefer long term investments.

Edited June 19, 2013 by garyk

[infinity11]

There must be more stable and valuable currencies worth investing in for safety than dollars or baht.

[Eesat]

Eesat: 'It looks like "Helicopter" Ben Bernanke is playing the role of his predecessor,wily old Greenspan in suggesting everything yet confirming and denying nothing!'

No he isn't.

He is leaving the Fed and Obama says he's been there longer than he wanted to be!Anyway,tomorrow's rate decision should definitely be interesting!

(Waits for yoshiwara's pantomime villain "No it won't"!)

What rate decision? There is zero chance of a rate change tomorrow.

A decision to not change rates IS nevertheless a rate decision!See post #7 for the rest as I can't be bothered with you running to the mods anymore!

[Lite Beer]

Investors urged not to panic over Fed policy plan.
By English News

BANGKOK, June 20 - Thai bourse chief soothed investor jitters after US Federal Reserve Chairman Ben Bernanke confirmed the Fed would begin reducing its stimulus spending later this year, saying Thailand's fundamentals remain strong.

Stock Exchange of Thailand (SET) president Charamporn Jotikasthira said the SET index dropped 43 points in tandem with global markets.

"Investors should not panic as Thailand's economic fundamentals and corporate earnings remain strong. The Thai exchange isn't planning any measures to contain the slump in share prices, "Mr Charamporn told a press briefing in Bangkok today.

Tokyo's Nikkei 225 was down 1.1 per cent at 13,101.53. Benchmarks in Indonesia, the Philippines and Australia each fell more than 2 per cent.

The Fed has been buying $ 85 billion worth of bonds monthly to keep long-term interest rates low to boost borrowing and spending. However, the Fed said the US economy was strengthening, and Chairman Bernanke said the bank's purchases will likely slow down this year and end next year. But he also noted the US central bank would withhold from tampering if economic conditions deteriorated.

The benchmark SET Index slumped 43.35 points to close at 1,394.35 points at the end of morning session in trade worth 37 billion baht.

The bourse chief also said that the Fed's given timeframe helped ease concern among investors and that listed companies could prepare their investment plan in advance. The Fed's decision helped weaken the Thai baht which is a boon to Thailand's exports, the key engine driving the Thai economy. (MCOT online news).

-- TNA 2013-06-20

[Lite Beer]

Kittiratt believes US Fed’s QE measures will not affect Thai economy

BANGKOK, 20 June 2013 (NNT) – Finance Minister Kittiratt Na-Ranong expresses his belief that the quantitative easing or QE measures to be taken by the US Federal Reserve policy board will not have much impact on the Thai economy, while urging the Bank of Thailand (BoT) to keep a close watch on the situation.

The Finance Minister said the move will not much affect Thailand as the country has plenty of reserves to keep the value of Thai currency under control, adding that Thailand, if affected by the Fed’s policy, could also lower its key interest rate in order to limit the amount of capital influx into the country.

However, the minister warned related agencies, especially the Bank of Thailand, against improvidence by keeping a watchful eye on the situation so that future fluctuations in the Thai currency or Thai economy will remain manageable.

Finance Minister Kittiratt has also suggested that Thai investors pay special attention to their business investments as there might be some speculations in the stock and bond markets, while warning them against borrowing money to make huge investments.

-- NNT 2013-06-20

[Ricardo]

while warning them against borrowing money to make huge investments.

-- NNT 2013-06-20

Unless it's a 2.2 trillion-baht 50-year loan for dubious infrastructure-improvements, of course.

[harryfrompattaya]

while warning them against borrowing money to make huge investments.

-- NNT 2013-06-20

Unless it's a 2.2 trillion-baht 50-year loan for dubious infrastructure-improvements, of course.

I have told you all what is going to happen Soros has planed this He wants the Baht to be 45 to dollar and the SET at 600 The Govt need interpol to stop this

[chiang mai]

while warning them against borrowing money to make huge investments.

-- NNT 2013-06-20

Unless it's a 2.2 trillion-baht 50-year loan for dubious infrastructure-improvements, of course.

I have told you all what is going to happen Soros has planed this He wants the Baht to be 45 to dollar and the SET at 600 The Govt need interpol to stop this

Calm down Harry and tell us all how George managed to perform this miraculous feat?