Baht slides further against $

THE NATION, AGENCIES



BANGKOK: -- FALLING TO a one-year low yesterday at 31.82, the baht has suffered from depreciation against the US dollar along with most emerging-market currencies.

Compared with this year's peak of 28.62, registered on April 19, the baht has fallen by 11.18 per cent. It has weakened by 4 per cent from 30.60 at end-2012.

Foreign investors are pulling money out of developing economies amid speculation that the US Federal Reserve will pare stimulus that has fuelled demand for emerging-market assets.

Investors pulled US$8.4 billion from developing-nation exchange-traded funds this year as economies from Indonesia to India weakened while the Fed is pulling out of its quantitative-easing programme. At press time, the Federal Open Market Committee's minutes of its July meeting had not yet been published. A Bloomberg survey of economists found that 65 per cent of respondents predicted the Fed would taper bond purchases next month.

Data showed that net-sells of Thai bonds this month have reached $530 million or nearly Bt16.9 billion. Meanwhile, after the single-day net-sell of Bt11.4 billion in Thai stocks on Tuesday and then Bt5.7 billion yesterday, year to date, foreign net-sells of Thai shares reached Bt106.7 billion.

"Basically, sentiment for emerging-market assets is weak due to speculation about the Fed's tapering," Tsutomu Soma, a manager of the fixed-income business unit at Rakuten Securities Inc in Tokyo, told Bloomberg. "Funds are flowing out from emerging markets. On top of that, Thailand's growth concerns are adding downward pressure."

A day after the National Economic and Social Development Board announced the second-quarter economic data on Monday, the baht fell from 31.20 to 31.53. The currency yesterday dropped 0.5 per cent to 31.82 per dollar as of 3.41pm in Bangkok after touching 31.83 earlier, the weakest level since July 2012, according to data compiled by Bloomberg.

Thailand, RP in better shape

Darren Buckley, head of Citibank Thailand, said outflows from Thailand should not be as bad as in India and Indonesia. Some markets such as Thailand and the Philippines are in a better shape to withstand external challenges and the situation should not be as bad as in 1997. Thailand's foreign reserves are huge, while its financial sector is much stronger.

Elsewhere, the plunge for some currencies has been steep.

India's ailing rupee hit a new record low yesterday after the central bank's plans to inject 80 billion rupees into financial markets failed to calm investor jitters. The rupee, the worst-performing Asian currency this year, fell to 64.60 to the dollar (2.02 per baht) in late-afternoon trade, down from its previous all-time low of 64.13 reached on Tuesday.

The Brazilian real has fallen by a similar amount, hitting 2.4282 to the dollar (7.34 to Bt100), a rate unseen since March 2009. On Tuesday, it dipped to the lowest level in four years, hurt by market expectations of higher US interest rates. On Monday, the Brazilian currency closed at 2.4169 to the greenback, trading above the 2.4 mark for the first time since March 3, 2009.

The Turkish lira has fallen by around 10 per cent since a February peak. The central bank on Tuesday unexpectedly raised its overnight lending rate by 50 basis points to 7.75 per cent.


-- The Nation 2013-08-22

Oh noes, the sky is rising. The sky is RISING !! Run for your ATMs/Exchange Booths ! Buy something now, sell something later !!

32,09 to $1.00 now; keep going down and down please!!!

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

Oh noes, the sky is rising. The sky is RISING !! Run for your ATMs/Exchange Booths ! Buy something now, sell something later !!

Turn your baht to gold to maintain its value

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

Good news for Export , bad news for Import ......

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

The slowdown is regional: http://blogs.cfr.org/asia/2013/08/21/is-southeast-asia-headed-for-a-repeat-of-the-late-1990s-financial-crisis/

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

What are the xenophobic policies?

Just a matter of time before the Bank of Thailand issues the obligatory canned warning about how the BOT is closely monitoring the situation and speculators who need to be cracked down upon will be dealt with sternly...

I'm reading that the baht is sliding to to a rumored announcement by the Federal Reserve Board.

I'd be converting $ to Baht now, and be delighted I was getting that rate. Often the rumor of impending action has a greater effect than the announcement.

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

What are the xenophobic policies?

check the words in a dictionary; then put them together. have a look at all the risks, lack of rights, lack of security investors have getting involved here.

Edited August 22, 201312 yr by gemini81

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

What are the xenophobic policies?

check the words in a dictionary; then put them together. have a look at all the risks, lack of rights, lack of security investors have getting involved here.

True - but those aren't due to policies specific to PT, are they? Has anything really changed in the past twenty - thirty years in that regard?

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

What are the xenophobic policies?

check the words in a dictionary; then put them together. have a look at all the risks, lack of rights, lack of security investors have getting involved here.

True - but those aren't due to policies specific to PT, are they? Has anything really changed in the past twenty - thirty years in that regard?

Just seems like they're getting tighter with protectionism; maybe further induced by the notion that Thaksin will return. He approves a lot of projects/development, but long term foreign investors have been shafted by him & ongoing changes of policies...

Whatever party, guess it'll take a hard lesson learned, or more economic disparity, before the ones higher up here change their policies and really open the country; they'd only do so out of dire necessity. Doesn't seem like AEC will really impact much here, but could be wrong; just exchange of workers across nearby borders...

Edited August 22, 201312 yr by gemini81

At this rate we might be able to rent jetskis soon and not be ripped off because of the exchange.

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

The slowdown is regional: http://blogs.cfr.org/asia/2013/08/21/is-southeast-asia-headed-for-a-repeat-of-the-late-1990s-financial-crisis/

You are correct, of course. But Mr. Waza won't let the facts get in the way of a good whine/whinge and inconsequential rant. You see, waza will find a way to bash the Thais regardless of which way the baht goes.

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

The slowdown is regional: http://blogs.cfr.org/asia/2013/08/21/is-southeast-asia-headed-for-a-repeat-of-the-late-1990s-financial-crisis/

You are correct, of course. But Mr. Waza won't let the facts get in the way of a good whine/whinge and inconsequential rant. You see, waza will find a way to bash the Thais regardless of which way the baht goes.

Perhaps you guys should read the article.......

The slowdown isn't regional, that's a gross exaggeration, but don't let facts get in the way of a good flame.

"Some leaders in Thailand, Malaysia, Indonesia and, one suspects, in China, worry that as easy credit is less available many of these countries are going to face currency crunches similar to that which launched the Asian financial crisis in 1997 as the Thai baht’s peg to the U.S. dollar collapsed."

Ok so they name 4 countries, that doesn't sound regional, in fact one isn't in SEA, and what do these countries have in common? Corrupt governments that borrow above their incomes.

"In many of these countries, massive current account deficits and the end of cheap credit are to blame for the slowdowns."

PS: You just don't get it, it isn't about the baht, its about quality of life for all the Thai people. But I guess its ok for the PTP to sell the Thai population into debt slavery, because the whole region is doing it.

Edited August 22, 201312 yr by waza

@ Gemini81, It is not the actual laws that matter here but the enforcement or lack thereof. Previous administrations had recognised the value of foreign investment and not enforced the archaic anti-foreign investment laws but the PTP has renewed vigor in its enforcement of laws that have always been on the books, regarding land ownership, etc.

Most countries today realised that land ownership restrictions are meaningless because the land will ALWAYS remain in Thailand. It is not like they are taking it somewhere else!

AEC will have massive (negative) impact on the lazy, generally dishonest workers in Thailand, relative to the neighbouring countries. To think otherwise is quite naive.

I smell bacon!!!

UPDATE:
Baht past $/32

BANGKOK: -- Thai baht on Thursday tumbles to a four-year low level at 32.07 per US dollar, as investors keep pulling funds out of emerging markets.

At 8.15am, the currency was at 32.06, falling as much as 0.72 per cent from the previous closing.


-- The Nation 2013-08-22

The whole objective of the western world is to lower the value of their currency so they can compete with the Chinese exports; who seems to consider it most critical to keep the value of the yen low; so why O why are there so many on the forum so quick to brand that the current Thai Government is incompetent and the result of the problem of the falling Baht. Several years ago it used to hover around 40 to the dollar; this is where it needs to be; this will help boost their exports and keep hold of inflation.

I love it! hoping and waiting for 1997 all over again?

_{Wow I am going to start drinking local Whiskeys Sangs sung instead of Imported Booze at the Gogos now.. In the Philippines the PESO has done the Opposite making it better for my USD recently!!!}

At this rate we might be able to rent jetskis soon and not be ripped off because of the exchange.

Maybe we will be able to afford the rip offs.

My Canadian dollar is going down against the U S dollar. But going up against the Baht.

Has any one heard from Moody's lately?

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

The slowdown is regional: http://blogs.cfr.org/asia/2013/08/21/is-southeast-asia-headed-for-a-repeat-of-the-late-1990s-financial-crisis/

You are correct, of course. But Mr. Waza won't let the facts get in the way of a good whine/whinge and inconsequential rant. You see, waza will find a way to bash the Thais regardless of which way the baht goes.

Perhaps you guys should read the article.......

The slowdown isn't regional, that's a gross exaggeration, but don't let facts get in the way of a good flame.

"Some leaders in Thailand, Malaysia, Indonesia and, one suspects, in China, worry that as easy credit is less available many of these countries are going to face currency crunches similar to that which launched the Asian financial crisis in 1997 as the Thai baht’s peg to the U.S. dollar collapsed."

Ok so they name 4 countries, that doesn't sound regional, in fact one isn't in SEA, and what do these countries have in common? Corrupt governments that borrow above their incomes.

"In many of these countries, massive current account deficits and the end of cheap credit are to blame for the slowdowns."

PS: You just don't get it, it isn't about the baht, its about quality of life for all the Thai people. But I guess its ok for the PTP to sell the Thai population into debt slavery, because the whole region is doing it.

mmm " and what do these countries have in common? Corrupt governments that borrow above their incomes.

"In many of these countries, massive current account deficits and the end of cheap credit are to blame for the slowdowns."..."

Would that be like the usa, uk and the other western governments busy printing money they don't have?

mmm " and what do these countries have in common? Corrupt governments that borrow above their incomes.

"In many of these countries, massive current account deficits and the end of cheap credit are to blame for the slowdowns."..."

Would that be like the usa, uk and the other western governments busy printing money they don't have?

Edited August 22, 201312 yr by alant

Great news. The Thai Baht has fallen from 43.67 to 50.02 since April against the British Pound which means an increase in pension of 14.5% since April.

Just a matter of time before the Bank of Thailand issues the obligatory canned warning about how the BOT is closely monitoring the situation and speculators who need to be cracked down upon will be dealt with sternly...

It will be preceded by Tourism Authority of Thailand announcing that the sliding baht will have no effect on tourism arrivals.

The Bank of Thailand warning will be followed by the Finance Minister pronouncing that the sliding baht is intentional as Thailand is positioning itself as the regional hub for sliding currencies.

Does this make the AUD $$ stronger or weaker against the THB?

of course, with all the issues going on and mismanagement of Pheau Thai. Xenophobic policies that contradict ASEAN.

What are the xenophobic policies?

Start reading here: http://travelinasia.hubpages.com/hub/thailand-racism

A TV Forum perspective: http://www.thaivisa.com/forum/topic/102798-thai-xenophobia/

Oops, for what it's worth: http://meebal.com/ashamed-to-be-a-thai-citizen/

Edited August 22, 201312 yr by MaxYakov

The Thai economy is in ruins, thanks to the fiscal mismanagement of the PTP led government. Foreign investor are fleeing like rats from a sinking ship, while the cabinet meander away with bulging pocket, leaving the Thai taxpayer to foot the bill. But its all mai pen rai till the time it takes a days wages to buy a serve of som tam, only by then there will be a wall of security keeping them in check.

The slowdown is regional: http://blogs.cfr.org/asia/2013/08/21/is-southeast-asia-headed-for-a-repeat-of-the-late-1990s-financial-crisis/

You are correct, of course. But Mr. Waza won't let the facts get in the way of a good whine/whinge and inconsequential rant. You see, waza will find a way to bash the Thais regardless of which way the baht goes.

Perhaps you guys should read the article.......

The slowdown isn't regional, that's a gross exaggeration, but don't let facts get in the way of a good flame.

"Some leaders in Thailand, Malaysia, Indonesia and, one suspects, in China, worry that as easy credit is less available many of these countries are going to face currency crunches similar to that which launched the Asian financial crisis in 1997 as the Thai baht’s peg to the U.S. dollar collapsed."

Ok so they name 4 countries, that doesn't sound regional, in fact one isn't in SEA, and what do these countries have in common? Corrupt governments that borrow above their incomes.

"In many of these countries, massive current account deficits and the end of cheap credit are to blame for the slowdowns."

PS: You just don't get it, it isn't about the baht, its about quality of life for all the Thai people. But I guess its ok for the PTP to sell the Thai population into debt slavery, because the whole region is doing it.

Actually it is all about the baht and nothing to do with the quality of life for all Thai's. Since when did any Thai government care about Thais quality of life?