Weakening of the Baht

[Lou Provencaou]

BANGKOK: - The weakening of Thai baht against the US dollar is likely to stay put for a longer period than earlier anticipated and importers are advised to resort to currency hedging to protect their business.

Mr Chow Kengchon, managing director of the Kasikornthais research centre, said Wednesday that the baht currency would continue to remain weakened against the US dollar due to uncontrollable external factor. Nevertheless, he said such a situation would not pose a business disadvantage as long as the Thai baht remains weak in the same level like other currencies in the region.

Mr Thiti Tantikulanant, an executive in capital market business of Kasikornthai Bank, suggested importers to secure currency hedging to reduce the risk for exchange fluctuation as the baht currency is likely to fluctuate until next year.

He anticipated the baht to weaken to 36.75 baht per US dollar at the end of this year as it was speculated that the US Federal Reserves would increase the interst rate by 0.25 basis points during a meeting on September 16-17.

The weakened baht currency corresponds with economic fundamentals and some sectors may be affected such as the importers and out-bound tour operators but the effects will be manageable, said Mr Kobsak Phutrakul, assistant president of Bangkok Bank.

Source: http://englishnews.t...lar-at-year-end

Even if the US have not raised their rate of interest as they may have done on the 17th of September meeting it is still possible and maybe likely that they raise it on their next meeting which should make the weakening of the THB to the USD going on at least for a while as investors will take money of Thailand to the US as it would be more rewarding financialy with a higher rate of interest.

[papa al]

All the central banks are "racing to the bottom". Expect wild volitility, and with volitility comes opportunity. Also pain and suffering, but in the words of George Soros, "Who cares?"

It is somewhat amusing to listen to all the criticism of China for its currency and market manipulation. The authorities in the US, Euro-zone, Japan, et al have been manipulating (or trying to) for all they're worth as well as accumulating unmanageable debt like a heroin addict with an AMEX card.

One of the perks of being old is knowing that I may not be around when the brown fecal matter eventually hits the rotating blades.

I have an AMEX card.

Where can I use it to cop some H.?

[hawksway]

If we knew that then we should probably be very successful financial advisors!

[Farang99]

27th September at 15:16.

Please be more specific, GMT, EST, what time zone please as timing is a crucial factor.

I have done a detailed technical analysis and trending of the most important indicators over the last 15 years, coupled with a socio-ecomomic study of the South Easten Asia region as a whole and my study concludes as regards the THB versus the greenback exchange rate that the Thai Baht should continue to loose ground against the US dollar or on the other hand it may see gains against the USD

Unfortunately the £ seems to be stuck fluctuating just above 55 with little movement. I fear the days of 75 are long gone.

I'll just add to this that my thorough research thesis into this matter has concluded that Brits are happier with the Baht at 55/£ than they were at 45/£.....but they drink far more beer when its 75/£.

I hope this helps!

[does]

Wrong. Spoken as a satirist. Ask a silly question...

27th September at 15:16.

Please be more specific, GMT, EST, what time zone please as timing is a crucial factor.

I have done a detailed technical analysis and trending of the most important indicators over the last 15 years, coupled with a socio-ecomomic study of the South Easten Asia region as a whole and my study concludes as regards the THB versus the greenback exchange rate that the Thai Baht should continue to loose ground against the US dollar or on the other hand it may see gains against the USD

Spoken like a true Economst, informstive but noncommital

[natway09]

To clarify, the Bht is dropping against two countries as I see it. Most currencies are having the same problem

For interest when I arrived in Thailand I got 17.2 Bht for for 1 AUD.

[elgenon]

Hmmm. I predict, if everything else stays the same, when the Fed raises the interest rate the Baht will fall. Money will move out of the emerging markets to the States. IMHO

[Naam]

To clarify, the Bht is dropping against two countries as I see it. Most currencies are having the same problem

For interest when I arrived in Thailand I got 17.2 Bht for for 1 AUD.

for interest... that must have been a long time ago. the lowest rate AUD / THB during the last 15 years was ~21.