Thai Baht Appreciates To Strongest Level In Six Years

[george]

Thai baht appreciates to strongest level in six years

Up-to-date exchange rates:

http://www.thaivisa.com/exchange_rates.0.html

Currency converter:

http://www.thaivisa.com/currency_converter.0.html

BANGKOK: -- The Thai baht has appreciated in the same direction with other currencies in the region by hovering around 37.50 to the US dollar Tuesday morning, the strongest in six years, according a money dealer.

Pattraradee Shinkulkitniwat of KASIKORNBANK said the Thai currency had moved in the same direction with other currencies in Asia.

However, the appreciation of the Thai baht remains less than other regional currencies.

The Singapore dollar, the Japanese yen and the Indonesian rupiah have appreciated to 1.586, 114.25 and 8,790 to the US dollar, the strongest in 8 years, 3 months and 3 months respectively.

The appreciation of currencies in Asia stemmed partly from a resolution adopted at the Group of Eight’s meeting last weekend to press Chinese yuan to appreciate.

As well, a projection that the United States’ Federal Reserve will slow or stop raising its key interest rates has made the dollar weaken against other currencies in Asia and Europe.

“The baht will have a strong resistance level of 37.28 to the dollar. Should the currency be able to break the level, it would strengthen to test 36 to the dollar. However, it is believed that the baht will not yet break such the level within the next 1-2 weeks,’’ she said.

Given the continued appreciation of the baht and other regional currencies, she suggested that exporters and importers hedge against the currency exchange rate volatility.

--TNA 2006-04-25

[dishrace]

and with the current inflation within thailand and the uncertainty surrounding the state of the govt (taskin and all), there is absolutely no foundiation for it...exchange rates are "smoke and mirrors"

[I wonder]

Why is the Baht so strong? I figured with the shaky government it should have weakened

[Jeddah Jo]

Not so much strong Baht as weak US$, although they have raised interest rates recently which will attract foreign capital.

JJ

[Foggy Bottom]

At this time of year it is also a seasonal factor

With the end of the tourism high season, Thailand is flush with foreign currency and uses it to buy back overseas Baht - this strengthens the currency.

April is also a traditionally high export month for agricultural products from Thailand - this draws in even more foreign currency (or drives Baht purchasing overseas) reinforcing the effect of tourist currencies.

If Thaksin was paid for Shin corp in foreign currency, then he's probably also dumped a lot of that into overseas banks before converting to Baht - also reinforcing the same thing.

Recently the banks (independently of BoT) raised interest rates on savings and bonds - that would also strengthen the currency.

It's also possible that the months long move to oust Cheerless Leader has been seen overseas as a positive move - farangs have long memories and the parallelling of TS to Adolf has not gone uncommented in western media - his removal would be appreciated by foreign exchanges and markets, again improving opinion of the Baht.

Lots of factors outside of genuine economic performance and industrial output, which will remain the main drivers of the Baht's strength or weakness.

[dishrace]

yea i remember the days of 42-43 baht and us feb was only payibg 2.5%...guess it is time to takemy usd somewhere else...dollars into this economy and inflated cost is a no win...maybe when dollars stop flowing in they may begin to want them and the us farang again...up to them...no more to come over here...

[Maigo6]

yea i remember the days of 42-43 baht and us feb was only payibg 2.5%...guess it is time to takemy usd somewhere else...

I can remember 25 Baht to a Dollar and less than 40 baht to a pound.

[hardy1943]

yea i remember the days of 42-43 baht and us feb was only payibg 2.5%...guess it is time to takemy usd somewhere else...

I can remember 25 Baht to a Dollar and less than 40 baht to a pound.

It was from 1948 until 1980 at 20 Baht per US$ and from 1980 until 1997 at 25 per US$

Actually if it goes down to 35 Thailand is still a very inexspensive place to live cmpared to the USA

[rono]

yea i remember the days of 42-43 baht and us feb was only payibg 2.5%...guess it is time to takemy usd somewhere else...

I can remember 25 Baht to a Dollar and less than 40 baht to a pound.

me too, this was before TS & co decided to float the baht ( managed they called it)

In no time this managed floating resulted in over 100 % devaluation until TS & co resigned.

Those were the days

[warriors]

So just be more carefull with your money and enjoy the land of smiles

Life is full of changes, so do not moan when it goes back in the direction that you wish it too.

Happy times for all

[britmaveric]

Bht will decrease just a matter of time - anyways beyond our control so really naught anyone can do about it even if it doesnt go down.

[Thaising]

LONDON : The dollar has fallen, hovering near a seven-month low after G7 finance chiefs urged a more flexible Chinese currency to help tackle global economic imbalances, dealers said.

The Euro struck a peak of 1.2410 dollars on Monday, which was its highest point since September 12, 2005.

The yen reached 114.88 dollars, the highest level since January 25 and a 2.5-percent gain since Friday.

In late European trade, the Euro stood at 1.2372 dollars from 1.2342 dollars late on Friday in New York.

The dollar fell to 114.94 yen, from 116.60 on Friday.

"We are hearing more and more about China, and that is all that is ever needed to take the dollar lower," said a currency analyst at the Bank of New York, Neil Mellor.

He highlighted a number of other factors acting against the dollar, including the prospect of an end to US monetary tightening, further central bank reserve diversification away from dollars and soaring oil prices.

"The scales are continuing to tip against the dollar," he said.

Elsewhere, the pound fell back from earlier levels after failing to make much headway following better-than-expected retail sales data in Britain.

An analyst at Calyon investment bank, Daragh Maher, said the data make a cut in interest rates in Britain "more unlikely", but did not really add any pressure for the central bank to start hiking rates either.

The Euro was changing hands at 1.2372 dollars against 1.2342 late on Friday, 142.22 yen (143.88), 0.6937 pounds (0.6925) and 1.5717 Swiss francs (1.5745).

The dollar stood at 114.94 yen (116.60) and 1.2701 Swiss francs (1.2760).

The pound was being traded at 1.7839 dollars (1.7818).

Most of Asia currencies appreciate against US dollar.

On the London Bullion Market, the price of an ounce of gold fell to 622.50 dollars per ounce, from 623.50 dollars late on Friday.

- AFP

[warriors]

Oh I also forgot that seeing the USA is one of the biggest debters in the world it might be getting time to as we say Pay the ferry man. If Japan and China call for some of there money back then we will see a real drop and you will have lots more then to sing about

[nasa]

Good news... Hope to see Thai baht appreciates more further to 3.0. anything can happen.

[Brett.]

yeah scary

I put the deposit on a 3,000,000 bt house last year and now will bepaying the rest in the next month

does anyone have any advice or info on the best way, ie (baht for pound) of transfering my cash

cheers

Brett.

[KhunFon]

I can remember a Singh at only 4Baht, and then I wasn't thirsty as I am now!

[Maestro]

does anyone have any advice or info...

My advice is not to use a Comic font. Specify no font and let the forum’s system use its default font.

--------------

Maestro

[palm]

What happended to all those 'armchair economists' on here who predicted 50baht/$ around now ?

[LaoPo]

Thai Baht - versus - other currencies:

April 24, 2006

http://www.ratesfx.com/rates/rate-thb.html

LaoPo

[ColPyat]

me too, this was before TS & co decided to float the baht ( managed they called it)

In no time this managed floating resulted in over 100 % devaluation until TS & co resigned.

Those were the days

Actually, it was not Thaksin & Co who floated the Baht, it was General Chavalit Yongchaiyuth. Thaisin was not yet in the position to be included in those decisions.

It is rumored that Thaksin got a week's advance notice by someone indebted to him of the secret decision on which date the Baht was supposed to be floated, and managed to make some handsome profis from that knowledge.

Sorry to be anal.

[rainman]

Thai Baht - versus - other currencies:

April 24, 2006

http://www.ratesfx.com/rates/rate-thb.html

LaoPo

looking at that, i'm glad i dont earn my money in mexican pesos...against thai baht its at 3.39 right now, having dropped -9.37 in 3 months. that's down from like 12.60 to 3.39 ....!!!

[Steve2UK]

Not so much strong Baht as weak US$, although they have raised interest rates recently which will attract foreign capital.

JJ

Not really true. The baht has also strengthened considerably against UK£ and Euro (and even against the Yen to some extent) in the last five months - just not as much as against the more fragile US$. In the same period, both UK£ and Euro have slightly strengthened against the greenback.

[Maestro]

http://www.ratesfx.com/rates/rate-thb.html

looking at that, i'm glad i dont earn my money in mexican pesos...against thai baht its at 3.39 right now, having dropped -9.37 in 3 months. that's down from like 12.60 to 3.39 ....!!!

???

That table talks of a difference of -9.37 percent, not a drop from THB 12.60 to THB 3.39, and even that percentage appears to be wrong:

The way I see it, you get more Baht for the Mexican Peso today than you got three months ago.

--------------

Maestro

Edited April 25, 2006 by maestro

[dave111223]

Man this sux, right before i move out there, and this has to happen.

What are the predictions will it go back up to 40 or will the baht continue to strengthen?

(Should i wait to transfer my US dollars? )

###### according to this: http://www.ratesfx.com/predictions/pred-thb.html the 3 month hi-low prediction is between 33 - 36

Edited April 25, 2006 by dave111223

[Maestro]

...you get more Baht for the Mexican Peso today ...

Oops, that Oanda charting software polayed me a foul trick: it displayed only one month.

You do, in fact, get about 9% less Baht for the Mexican Peso today than three months ago.

--------------

Maestro

[Maestro]

What are the predictions will it go back up to 40 or will the baht continue to strengthen?

(Should i wait to transfer my US dollars? )

That’s a tough one to answer.

There was another thread recently on the subject of the strengthening Baht: “The Baht Appreciates To Strongest Level In 7 Years”

--------------

Maestro

[Anon999]

yeah scary

I put the deposit on a 3,000,000 bt house last year and now will bepaying the rest in the next month

does anyone have any advice or info on the best way, ie (baht for pound) of transfering my cash

cheers

Brett.

The exchange rate baht/pound will be the same whatever bank you use as everything is done electrically these days. The only difference is the amount each bank charge, Nationwide charge £20. However, it may be worth opening a PO savings account, I do not what their charges are.

And yes change that awful font!

[Brewsta]

At this time of year it is also a seasonal factor

With the end of the tourism high season, Thailand is flush with foreign currency and uses it to buy back overseas Baht - this strengthens the currency.

April is also a traditionally high export month for agricultural products from Thailand - this draws in even more foreign currency (or drives Baht purchasing overseas) reinforcing the effect of tourist currencies.

If Thaksin was paid for Shin corp in foreign currency, then he's probably also dumped a lot of that into overseas banks before converting to Baht - also reinforcing the same thing.

Recently the banks (independently of BoT) raised interest rates on savings and bonds - that would also strengthen the currency.

It's also possible that the months long move to oust Cheerless Leader has been seen overseas as a positive move - farangs have long memories and the parallelling of TS to Adolf has not gone uncommented in western media - his removal would be appreciated by foreign exchanges and markets, again improving opinion of the Baht.

Lots of factors outside of genuine economic performance and industrial output, which will remain the main drivers of the Baht's strength or weakness.

[Brewsta]

Hiya Buddy,

married life good 4ya ?

Good facts plus the Bank of China are selling $USD short here in HK

...... plus Hu JT just slapped GW in the face by dismissing any changes to rates policy in his visit to Washytown last week

.....so on & so on...

Love thepics and keep the faith......

Huggz from HK,

PWH

[ray23]

OK guys. not panicking yet and I'm fortunate enough to have the major purchases out of the way, so even if it went back to 25 I would be ok, not to say I don't mind have a more spending power.

Anyone know what the inflation rates have been since the last time it was at 25?

I could care less what the the ups and downs are. But someone mentioned a 4 baht beer seen any of that lately, how about a one baht ride on the sungtaows?. If a pay 20 baht pays for a soup at the noodle shop what would have paid when it was at 25?

Where I see the real problem is not at what rate the exchange but what is your purchasing power, now that one concerns me. I don't see prices going down because the baht went down. Comparing life here to America there is no comparison, the infrastucture for the most part is much better there. The emenitities are there, far beyond anything here. What you can have here at the moment is a very good lifestyle for a lot less money. However with inflation and the increasing value of the baht, that could change.

There are still other places in Asia where you get more bang for your buck, always have been. So what stops people from packing up and heading off to greener pastures? After all that is probably what brought you here in the first place.

Where I set today I owe a million on the house another 400K on the truck, of it got to bad I could as many others could as well, get the wife a passport and leave. Not pay a dime to anyone, what would be the effect of that beyond Thialand not much if any. That is why they want biger down payments from us the Thai's.

To be honest I'm very content here in most ways, but I would not recommend to people to come here and establish a life today. Here in the Udon rea today the asking price for farm land on a paved road with power to in the area is 300K a ria. Now that is roughly $20,000 an acre, ten years ago in Delano California I bought twenty acres of farm land for $10,000 thats $500 an acre in California. It was under priced and I doubled my money in 90 dyas. But even with that it was still a $1,000 an acre, for usable farm land on a paved road with electricity to the property.

I see people paying 4 mil for houses here in Udon even at 40 thats a hunk of change, at 36 it's even more, do you see property prices going down, I don't. there are many nice places even in Ameria where you guy buy one heck of a house for 100k dollars. If you choose to eat farrangs food they cost less there then do here.

Probably the only thing that I see you can't accomplish there that you can here is the qaulity of ladies. Guess what if your a player and I'm not, so my lady is portable you don't pay the same amount these days a you did when the it was 25, think it's going to go down I don't.

To be honest with you, I see no reason to panick, I have a reoccurring income and passport I still have the power, I can leave if things ever got that bad and go where things are better. I don't think they will.

I hope that there are other reasons you stay in Thailand then what the rate of exchange is, if not your probably in the wrong place to begin with.

I'm no economist, but what I see here is a paper economy, the farrangs are spending stupid amounts of money me included and the Thia's are keeping up with the Joneses and purchasing beyond thier means to repay.

Example I rented a two bedroom two bath house in the complex live for 3500 a month. Brand new house. A teacher bought it as an investment, they are now selling at 900K per unit. Because he was a government employee he could put 10% down. What paid him did not make the payment folk not even close. Eighteen months later the bank is in the process of reposessing the house adn ther are many more in the complex, most of which the original owners have never lived in. Now this was the second house I rented here in a three year period that the bank was trying to get back. Leads me to believe the bank are going to be stuck with properties that can not recover from again, just like 1997.

So I'm not trying to sell my house, I'm not packing my bags, because what the baht is doing today has nothing to do with the reality of what is happening here. Sooner or later reality will catch up and I will have my old purchasing power back.

As to the dollar, as soon as we have a President in office that wants to pay off the debts it will happen again, just as it did with Uncle Bill, he had on track. I don't particualry like him but in comparison to Uncle George I think eight years of the current thinking (not counting Papa) is more then enough. I would be counting out the dollar just yet.

At the moment America is getting to be a less expensive place to buy from if the transactions are in dollars, helps the export market which is why China didnt want to change it's currency.

So I will set around and worry with everyone else simply because I have the time, but I think we will eventualy be back to more bang for the buck.

Just my humble thoughts