Whats With The Baht & Exchange Rate Today?

[Gonzo the Face]

Whats happening that is making the Thai Baht so volatile today??

I don't think that I have seen 9 rate changes in one day, ever before today. It has strengthened about a half baht against the Dollar this day...... Anything special happening thats not being reported in the news?

[sas_cars]

Yes, I am also surprised to see it. Don't know what's going on here

[ThaiPauly]

This also happened about 10 days ago, it will be back up again tomorrow...hopefully ???

[worgeordie]

Supply and demand,or just speculation.

regards Worgeordie

[swissie]

Mostly strengthening against the USD. Other currencies less affected.

Most likely: Thailand Central Bank intervention. There is a bandwidth in which the Bht is allowed to float. Apparently, the "lower floor" of the Bht devaluation has been reached.

Not to worry. The Thai Central Bank has not the necessary "Ammunition" to stem the decline of the Bht longer term. So, if it is a "market intervention" that is actually undergoing, it will be short lived.

Cheers.

[sandyf]

Yes, I am also surprised to see it. Don't know what's going on here

The Euro and the Pound have also dropped against the Baht in the same timeframe.

The Pound is currently 54.77, as opposed to 55.26 at 7.30 this morning. Dollar at 35.87 against 36.3 at 7.30 am.

Edited October 7, 2015 by sandyf

[Cypress Hill]

It's pretty simple

The likelihood of a Fed rate hike has diminished.

The UK and Europe aren't going to raise rates any time soon either.

Wouldn't count on the Bank of Thailand intervening to keep the baht weak either.

The dollar bull run is over if only temporarily

[Pib]

Since I was close to doing my monthly withdrawal using my U.S. no foreign transaction fee Visa debit cards which also reimburse ATM fees and seeing the FX rate drop today I knew "tomorrow's Visa rate would drop also.

Visa (and Mastercard) generally set their rates for a 24 hour period and generally only change their exchange rate once during that 24 hour period. I use the "generally" word since Mastercard sometimes changes rates during the 24 hour period for some currencies. The rate Visa/Mastercard use is generally based on the previous day(s) FX rates. But with bank exchange rates for incoming wire transfers, notes, etc., those rates follow the daily FX rate pretty closely and can change numerous times during the day.

So, I checked the Visa exchange rate webpage...the Visa Global rate was 36.20 per USD...I take my U.S. Visa cards and go withdraw Bt60K around 1pm today...rate hitting/posting to my U.S. bank accounts was 36.20 since U.S. bank use the single messaging settlement approach for debit cards.

Now for a person with a Visa card issued by a European bank the rate today is 36.19 according the the Visa webpage...but if you withdraw today you still may end-up getting "tomorrow's" rate since some European banks apparently use the double messaging method (similar to how credit card withdrawals/purchases post/settle) which means it may not be until the next day that the charge posts/settles to your account...and tomorrow's Visa rate will probably be lower based on today's FX rates.

[elgordo38]

Mostly strengthening against the USD. Other currencies less affected.

Most likely: Thailand Central Bank intervention. There is a bandwidth in which the Bht is allowed to float. Apparently, the "lower floor" of the Bht devaluation has been reached.

Not to worry. The Thai Central Bank has not the necessary "Ammunition" to stem the decline of the Bht longer term. So, if it is a "market intervention" that is actually undergoing, it will be short lived.

Cheers.

After you explain this to me explain why the American stock market has come roaring back running against real lousy employment numbers and declining profits for American companies. Is this comeback totally based on financial junkies waiting for another QE4 fix from the Fed? Seems like the only answer. Manipulation with all the algorithmic trading going on? Puzzling at best.

[peterrabbit]

The IMF says its all ok, the world economy not hitting the buffers.

So emerging economies currencies gain value as a result.

However anyone living in Thailand can see the reality of what it is really like.

China's current cold is everyone elses pneumonia.

[puukao]

this is the beginning of 1:1........the TOP is in!!!

but good luck fellow TVers

I will give you 10 baht for your $1 for only the first $20,000........

the offer expires soon!!!!

[Naam]

Mostly strengthening against the USD. Other currencies less affected.

Most likely: Thailand Central Bank intervention. There is a bandwidth in which the Bht is allowed to float. Apparently, the "lower floor" of the Bht devaluation has been reached.

Not to worry. The Thai Central Bank has not the necessary "Ammunition" to stem the decline of the Bht longer term. So, if it is a "market intervention" that is actually undergoing, it will be short lived.

Cheers.

most Asian currencies as well as AUD and NZD strengthened not only vs. USD but also vs. GBP and EUR. and so did other currencies too. biggest gainers vs. the three ($ £ €) were MYR, IDR, ZAR, BRL and CAD.

[bassman]

Prices of commodities have started to stabilize this week. Which is a gain for the exporter and developing countries, this could well be one of the reasons.

[hawker9000]

It's pretty simple

The likelihood of a Fed rate hike has diminished.

The UK and Europe aren't going to raise rates any time soon either.

Wouldn't count on the Bank of Thailand intervening to keep the baht weak either.

The dollar bull run is over if only temporarily

I don't think so. Fed intentions are now old news and don't explain such a rapid movement. I agree with swissie; more likely a (Thai) Central Bank intervention to maintain the baht within some benchmark range.

[TechnikaIII]

It's more about what's happening to the US dollar.

In case you hadn't noticed, the Thai Baht and the US dollar are not the only two currencies in the world.

[alanrchase]

Whats happening that is making the Thai Baht so volatile today??

I don't think that I have seen 9 rate changes in one day, ever before today. It has strengthened about a half baht against the Dollar this day...... Anything special happening thats not being reported in the news?

Never seen 9 rate changes in a day? Where are you looking? Exchange rates change many times a minute.

[1FinickyOne]

What makes markets difficult to play and predict is the volatility - it is never a straight line up or down - otherwise it would be quite easy for speculators and investors - which of course, it is not… markets move based on varying factors, meaningful or not… profit taking, sentiment and other things that are not bound in fundamentals… try not to let it make you crazy

[Dogbreath]

Maybe the Bank of Thailand in its infinite wisdom decided to prop up the baht by market operation. If so, it will be a short-lived program. With the Thai Steel company loan default and all the empty, unfinished and unsold condo projects with no buyers in sight, the baht is headed for a rough ride. The only bright side is that it will help Thailand's export business. My 2c worth.

[akentryan]

Don't know but I got 36 to the dollar (net net) on an ACH transfer from the USA yesterday.

[Gonzo the Face]

Whats happening that is making the Thai Baht so volatile today??

I don't think that I have seen 9 rate changes in one day, ever before today. It has strengthened about a half baht against the Dollar this day...... Anything special happening thats not being reported in the news?

Never seen 9 rate changes in a day? Where are you looking? Exchange rates change many times a minute.

Stuff it with being pedantic...... I am speaking of the real world that people live in...... not the world between your lobes

[Petchabun Man]

Don't know but I got 36 to the dollar (net net) on an ACH transfer from the USA yesterday.

What is a ACH transfer ? And how do i go about getting it ?

[Pib]

Whats happening that is making the Thai Baht so volatile today??

I don't think that I have seen 9 rate changes in one day, ever before today. It has strengthened about a half baht against the Dollar this day...... Anything special happening thats not being reported in the news?

Never seen 9 rate changes in a day? Where are you looking? Exchange rates change many times a minute.

He's probably talking the exchange rates offered by Thai banks...rates they update periodically through the day...maybe only the initial opening update if the FX market is tame for the day...or many change if it's a volatile day on the FX markets.

Just for example I've seen up to 18 changes per day at Siam Commercial Bank (SCB) a year or so ago when the FX market was all over the map for a few days due to some world financial event. And I'm not implying 18 changes per day is the most SCB has had...I'm sure there have been days with more...it's just I was watching kinda close back then and noticed that at the SCB website....other Thai banks were making many daily changes also. For example, yesterday SCB had 14 rate changes....note the SCB exchange rate webpage for yesterday...each "time" stamp represents an update in their exchange rates. And from looking at the Bangkok Bank exchange rate page they had 9 changes yesterday.

[alanrchase]

Whats happening that is making the Thai Baht so volatile today??

I don't think that I have seen 9 rate changes in one day, ever before today. It has strengthened about a half baht against the Dollar this day...... Anything special happening thats not being reported in the news?

Never seen 9 rate changes in a day? Where are you looking? Exchange rates change many times a minute.

Stuff it with being pedantic...... I am speaking of the real world that people live in...... not the world between your lobes

Sorry to upset you. In my real world I get the rate at the time that the exchange is made. The rate on the board in a bank is generally more of a guide than what you get at the time you make the exchange.

[tajtom]

t should be falling not stronger

<deleted> ?

The economy is not good and there baht is staying hmmm. Something wrong there

Its a fake reading and I suppose there having some luck somewhere

It will level soon. The ice will melt

[Eric Loh]

Really started with US September job creation misses big expectation about 6 days ago. Stock market rally as the sentiment for rate increase this year doused by this poor data. Currency took the cue and most currencies appreciated including the Baht. However the biggest gainers were the Malaysian Ringgit and Indonesia Rupiah with more in-flow of stock investments and better commodity prices. The US dollar strength slow down benefited commodities and most commodity exporting countries saw much strengthening of their local currencies.

[Zyxel]

Don't know but I got 36 to the dollar (net net) on an ACH transfer from the USA yesterday.

What is a ACH transfer ? And how do i go about getting it ?

ACH stands for Automated Clearing House, which is a network used for electronic payments and money transfers. The fee is lower than with wire transfer. Not sure but I think that your bank has to be in the US or Canada. You have to contact your bank to set up the ACH transfer.

[spermwhale]

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Edited October 8, 2015 by spermwhale

[spambot]

Since I was close to doing my monthly withdrawal using my U.S. no foreign transaction fee Visa debit cards which also reimburse ATM fees and seeing the FX rate drop today I knew "tomorrow's Visa rate would drop also.

Visa (and Mastercard) generally set their rates for a 24 hour period and generally only change their exchange rate once during that 24 hour period. I use the "generally" word since Mastercard sometimes changes rates during the 24 hour period for some currencies. The rate Visa/Mastercard use is generally based on the previous day(s) FX rates. But with bank exchange rates for incoming wire transfers, notes, etc., those rates follow the daily FX rate pretty closely and can change numerous times during the day.

So, I checked the Visa exchange rate webpage...the Visa Global rate was 36.20 per USD...I take my U.S. Visa cards and go withdraw Bt60K around 1pm today...rate hitting/posting to my U.S. bank accounts was 36.20 since U.S. bank use the single messaging settlement approach for debit cards.

Now for a person with a Visa card issued by a European bank the rate today is 36.19 according the the Visa webpage...but if you withdraw today you still may end-up getting "tomorrow's" rate since some European banks apparently use the double messaging method (similar to how credit card withdrawals/purchases post/settle) which means it may not be until the next day that the charge posts/settles to your account...and tomorrow's Visa rate will probably be lower based on today's FX rates.

Great post - It took me some effort to realise some time ago this stuff you have pointed out here - I was amazed that my Visa ATM withdraws allowed me to decide a good day for my exchange and use my card the next day and I had time to consider this for 24 hrs - No requirement to follow real time shifts - Simply view the close of business rate and then make the consideration - 24 hrs to decide.

Great extra info - I did not know before - The practice of Single-message transactions (and I did have to look this up) - But now realise that it does give illumination to why the 24 hrs is available to consider the fx rate - In that they have only one cutoff time each day. Therefore when it changes then it does so for all network participants so that at any point in time, the cutoff time is the same for all participants and is nonnegotiable. Then at the cutoff time the network calculates the total monetary positions for all its client banks for the day’s single-message transactions and hence can only use a single FX rate - not a real time rate for each transaction.

Thanks for the post - Enjoyed its contents

Edited October 8, 2015 by spambot

[circusman]

Relax folks. Get outside and smell the roses the fields burning.

[Nemesis7]

Interesting, tourists will love it