The Baht Appreciates To Strongest Level In 7 Years

[george]

The baht appreciates to strongest level in 7 years

BANGKOK: -- The Thai baht has appreciated to 38.03 to the US dollar, the strongest in seven years, before weakening slightly to stay around 38.07-38.08 to the dolar in the morning session.

A money dealer at Bank of Ayudhya Plc said the baht had strengthened in the same direction with other currencies in the region since there was a shift of investment into the stock markets and an expectation that interest rates of the countries in the region would increase further.

The dealer projected the baht would continue to appreciate to 38 to the dollar in the near future and perhaps to 37 to the dollar by this year.

The Finance Ministry’s Spokesman Somchai Sajjapong said the continued strengthening of the baht to 38 to the dollar stemmed from an inflow of foreign funds to acquire a steel company listed on the Stock Exchange of Thailand.

However, he believed the appreciation of the local currency would proceed in the short run. The Bank of Thailand is closely monitoring the baht movement.

Should the baht strengthen for long due to an improvement in the economic fundamental, he said, the ministry would consider how the appreciation would have an impact on the country’s exports.

Still, he thought the exports had not yet been adversely affected at current because purchase orders are normally placed around 2-3 months in advance.

--TNA 2006-04-10

[Scott]

I'm glad I've already bought baht!

[danone]

dont believe a fart that this has to do with foreign money coming into the country. that money was coming in at much higher rates some months ago. the inflow of foreign money is de facto running dry - talk to the respective industries.

but it doesnt take much to influence the value of the baht. I'm about convinced that mainly offshore trading strengthens the baht more and more.

observe it. once the local markets close and the US markets open, the baht in quite some many occasions gained another 10 satang, the next day another 10 satang ...

somebody is manipulating this strengthening - and you dont need big bucks to influence such a banana currency.

[lovethailandlongtime]

The baht appreciates to strongest level in 7 years

BANGKOK: -- The Thai baht has appreciated to 38.03 to the US dollar, the strongest in seven years, before weakening slightly to stay around 38.07-38.08 to the dolar in the morning session.

A money dealer at Bank of Ayudhya Plc said the baht had strengthened in the same direction with other currencies in the region since there was a shift of investment into the stock markets and an expectation that interest rates of the countries in the region would increase further.

The dealer projected the baht would continue to appreciate to 38 to the dollar in the near future and perhaps to 37 to the dollar by this year.

The Finance Ministry’s Spokesman Somchai Sajjapong said the continued strengthening of the baht to 38 to the dollar stemmed from an inflow of foreign funds to acquire a steel company listed on the Stock Exchange of Thailand.

However, he believed the appreciation of the local currency would proceed in the short run. The Bank of Thailand is closely monitoring the baht movement.

Should the baht strengthen for long due to an improvement in the economic fundamental, he said, the ministry would consider how the appreciation would have an impact on the country’s exports.

Still, he thought the exports had not yet been adversely affected at current because purchase orders are normally placed around 2-3 months in advance.

--TNA 2006-04-10

Heres hoping for a massive decrease in the thai export market

[drbones666]

Yo Toxin: SPANK!!!!

[ThaiPauly]

This will not help tourism one little bit.

It is also not at all helpful for those living here on fixed income from abroad.. If it strenghthens any further some will be forced out I fear.

I hope this trend reverses soon

[Foggy Bottom]

During the last quarter of last year, the baht strengthened very slightly against the UK Pound (dropping from 77 baht to 75 to the pound)/

Since the anti-Thaksin movement gained momentum, it has strengthened weeklu until is now in the 65 point something range on ATM rates - or around a 16% gain in strength compared to 4 months ago

When Thaksin made his statement concerning the sale of Shin Corp, that he would not explain it and all would become clear in due time, he had probably foreseen that to get paid in baht back then would equate to massive baht buying in Singapore (to pay him) which would strengthen the currency allowing him to buy another currency cheaply, which in turn would devalue the baht, allowing him to buy baht back at a profit and so on ..... basically, exactly the sort of manipulation referred to above - and with the maney he got for Shin, his currency trading would be big enough to cause those swings.

Also, with the rise in anti-Thaksinism, foreign institutions aware of his protectionist, farang-fleecing policies, may have gained increased confidence about investing here. Following his "not stand as PM again" statement, it may have spurred them to invest the funds they've been holding back due to unsurety (sp?) about what anti-alien policies he would introduce next.

Remember that the annual average rate of foreign-funded BOI sponsored investments, under Thaksin, has been only 10% of those under Chuan. Forget the cash total - look at the number of projects if you want a clearer picture. Small investors cannot negotiate the preferential terms that the big boys could demand of the government - guess which group TRT has scared away?

[logbags]

This reeks of manipulation. Like the massive ramping of Shin stocks before the sale. Now Thaksin and co have cashed up the Baht suddenly rises. No surprise really.

[dezeure]

hehe funny story...

The baht is appreciating a few cents to the dollar, but the dollar keeps dropping to the Euro...

Conclusion: I get a lot more Baht for my Euros than before...

Thank god I get paid in Euros...

SD

[hardy1943]

I gad you are happy with you 45 Baht per Euro., a year ago is was over 50 per Euro

[Neeranam]

Great news , I hope it continues to strengthen. I get paid in baht and it costs me a bloody fortune to take the family 'home' for a holiday.

[Nutcracker]

So what to do? I need to bring in a pile of sterling dosh to buy a car in May/June. Bring it in now or wait?

[madforit]

I've been watching this closely as have been organising my mortgage in the UK to allow me to buy a house in Phuket. Started organising the mortgage last September when it was about 74 to the pound. This is a real pain for me..I've currently lost about 7 grand UK due to the exchange rate...so having to work here longer to make up the difference before I move out (v. tight budget!!!). Of course, I'm only one small person out of millions, so who cares about my problem!?!! Sympathies to those people living on a fixed income from abroad. Lets hope the exhange rate returns to more normal levels (70-75ish) soon. The sooner that happens the sooner I'll be drinking Chang by the sea!!!!

Nutcracker - I'd wait unless you really have to have the car now.. Things must (fingers crossed) turn around soon.

Chok Dee

Paul

Edited April 10, 2006 by madforit

[Neeranam]

So what to do? I need to bring in a pile of sterling dosh to buy a car in May/June. Bring it in now or wait?

Well I would bring it in now if you have it..... dont get stuck with legal trouble....bring it in $3,999 lumps so no Gov officials get wise to your cash infusion! Unless you want to pay tax bring in more than $10k :-)

You buyin something that smells funny???? just kiddin-

if you want to save money bring it in now :-)

Open a Natonwide account and take it out free in whatever amounts you wish.

[marquess]

Great news , I hope it continues to strengthen. I get paid in baht and it costs me a bloody fortune to take the family 'home' for a holiday.

Same Same! Long may it continue, I have watched my bi annual overseas trips get more and more expensive over the last six years. As for those of you who are rich enough to have fixed incomes from abroad, don't worry your in it for the long haul, and the appreciation wont' be for long, it never is.

[jaapfries]

Okay I do not like Thaksin but I have to admidt very clever :-)

Reminds me of George Soros when he shorted the Burmese Gov. in 1999 with like $1.4 Trillion in and out which nearly destroyed their economy.....poor communist wonderful peace loving leaders that the Burmese are :-) Hurt Levis Jeans Co and they had to pull out of the country and lose all that cheap slave labor....

Thaksin's manipulating the economy only hurts the poor farmers trying to export goods to China, USA, etc.

Not sure yet exactly how it affects general export goods.

:-) Makes it harder to get those tasty 20bt dishes!!!

Some places in Chiang Mai I can get a noodle soup and a coke for 20bt--- but now its 25bt :-(

==============================================================

I admire your practice of "the bliss of ignorance" here; there are these 'dark & sinister-influences' at work - and yet - you only worry about the extra 5 Baht you must now fork-out for your soup & Coke . . . . Your problems are easily solved: drink water with your soup and Bingo . . . .you're actually saving money and staying much slimmer in the bargain ! ! !

Never mind Forestcall, Let the 'men' worry about the 'dark & sinister-influences', which are at work here, huh . . . . . . . .

[backflip]

"Reminds me of George Soros when he shorted the Burmese Gov. in 1999 with like $1.4 Trillion"

Like George Soros has like a lot of money, but he neither has nor controls like $1.4 trillion.

The PM can't catch a break. When the baht weakened, TVers blamed him. Now, when the baht strengthens, TVers blame him. True to form, TVers have him at the top of a conspiracy, using his tax-free $1 billion. You guys are a funny lot.

[simcity]

yesterday i saw a thai friend , he complaint , interest rate has rise 3 time in one month .

interest rate go higher , a lot more expensive to buy a car or a house / condo !

[Phil Conners]

I gad you are happy with you 45 Baht per Euro., a year ago is was over 50 per Euro

A year ago? Huh, in September 2005 it was over 51. USD/EUR has been pretty stable since last summer, if anything the dollar seems to be on it's way up a little.

4-5 years ago the Brazilian Real was manipulated from 2 to 4 to the dollar - by their own banks. Wouldn't be surprised it was the same situation here. Banks have no morals.

[danone]

to send or not to send

one lesson: dont believe official reasoning of the BOT why the currency makes those moves and that they observe the currency ... they do nothing and know hardly more than nothing.

am in the same position as nutcracker, have to send several millions and postpone it since october, since the fall/rise began.

I still hope for better days but do not get angry anymore because of "lost opportunities".

money only made in the mind is deceiving.

so nutcracker, I think the only way out is to take it as it comes.

what I did though with this year's taxes: I arranged to pay drastically less than last year, because I consider it my right to get some of that money back I lost because of some strange currency movements.

[britmaveric]

38.1427 THB today.

[lannarebirth]

I gad you are happy with you 45 Baht per Euro., a year ago is was over 50 per Euro

A year from now it will be 40. A year after that less.

[capt_canada42]

hehe funny story...

The baht is appreciating a few cents to the dollar, but the dollar keeps dropping to the Euro...

Conclusion: I get a lot more Baht for my Euros than before...

Thank god I get paid in Euros...

SD

Yah but so much for your fellow country men the high cost of your currency means the cost of your goods are high and no work as your products costs are high, but I guess you Euro ######s don't care about work or making a living you just want to play the big man role, same as the English and there over valued pound

[skippybangkok]

not complaining..... most of my stuff in baht, look forward to the day it goes back to 25 . Figured at 50B/$, it could never get worse, so stuck with Baht from then on.

I am not a finance buff, any chance of that ever happening ? (25)

[salty]

I gad you are happy with you 45 Baht per Euro., a year ago is was over 50 per Euro

A year from now it will be 40. A year after that less.

Could you give us the results of a few upcoming horse races so we can make up the extra costs we will incur in next couple of years?

[johnwills]

Interesting situation at the moment; as for sterling, I wouldn't worry to much, expect the interest rates to rise in the UK in around 6 months, Inflation pressures from housing and living costs will force the BOE to increase rates which in turn will increase the strength of sterling (not sure we'll get back to the 70+ that quickly though)

As for the Euro, not much change really and the Dollar should strengthen slightly with the next round of interest rate increases. However, if I had dollars I'd sell soon, expect a big reversal of fortune in the next year or so for the American economy.

[Otis]

Worry not friends. Economics will take care of meddling men. Here is my theory of the "dismal science".

O sweet economics

how often have the

doting fingers of pruient

government bureaucrats

pinched and poked

thee

has the haughty thumb of fools prodded thy beauty? how

often have crusading lawyers taken

thee

upon their scraggy

knees

squeezing and buffeting thee

that thou mightest conceive

respect and profit unearned.

but, true to thy invisible and guiding hand, thou

answerest them with unconquerable,

equilibrium.

hoping you enjoy and stay well in the land of serendipity. Otis

[mogoso]

Reminds me of George Soros when he shorted the Burmese Gov. in 1999 with like $1.4 Trillion in and out which nearly destroyed their economy.....poor communist wonderful peace loving leaders that the Burmese are :-) Hurt Levis Jeans Co and they had to pull out of the country and lose all that cheap slave labor....

The George Soros, the same George Soros whom backs moveon .org and others like it. The socialist whom backs every nutcase in the political left in the USA. Why he's a democrat and a friend to all suffering people in the world. He'd never harm anyone from the political left, he's a democrat.

[Anon999]

dont believe a fart that this has to do with foreign money coming into the country. that money was coming in at much higher rates some months ago. the inflow of foreign money is de facto running dry - talk to the respective industries.

but it doesnt take much to influence the value of the baht. I'm about convinced that mainly offshore trading strengthens the baht more and more.

observe it. once the local markets close and the US markets open, the baht in quite some many occasions gained another 10 satang, the next day another 10 satang ...

somebody is manipulating this strengthening - and you dont need big bucks to influence such a banana currency.

Why are you still in LOS if you believe it's a 'banana' currency?

Central banks now find it very difficult to influence currency movements for anything other than short term at best, many have tried in the past few years unsuccessfully. The Baht has been appreciating for months as can been seen by many posts here. However, everything is cyclical so expect the baht to weaken in due course. Your observation about currency traders buying the baht, just like they buy other currencies and commodities, is probably correct as that is what they do for a living, then eventually everything reverses.

Edited April 10, 2006 by Anon999

[farang2002]

dont believe a fart that this has to do with foreign money coming into the country. that money was coming in at much higher rates some months ago. the inflow of foreign money is de facto running dry - talk to the respective industries.

but it doesnt take much to influence the value of the baht. I'm about convinced that mainly offshore trading strengthens the baht more and more.

observe it. once the local markets close and the US markets open, the baht in quite some many occasions gained another 10 satang, the next day another 10 satang ...

somebody is manipulating this strengthening - and you dont need big bucks to influence such a banana currency.

I believe the main problem rests with the US dollar and the economic policies of the current administration. Since 2001 the dollar has slid against nearly all major currencies: pound, euro, yen. President Bush has yet to veto one spending bill to cross his desk, not to mention the cost of the Bush war, Katrina, low interest rates and tax cuts adding to the largest budget deficit in history makes the US dollar look like a less viable investment. Maybe we Americans, if we're living off social security, should think of investing our money in Chinese stocks and learning Mandarin.