Why is the U.S.Dollar heading south?

[wwest5829]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

Yea, too many like me just living off the government in retirement on Social Security.

[Berty100]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

Everybody works here?

I see many work in snooker halls.

[craigt3365]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

Yea, too many like me just living off the government in retirement on Social Security.

For which we paid into for many years! LOL

[DDbkh]

Two words explain it - Trump Clinton

[Colabamumbai]

I am happy about that, because the value of the Canadian dollar which has long been undervalued is up to 27 Baht.

[gandalf12]

You are assuming that thee Thai Baht is allowed to float and find its own rate, it isn't. The exchange rate is set at the rate by I assume the BoT. If it was allowed to float the rate would probably be a lot better than it is

[robblok]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

"Thailand economy is not that bad. Everyone works here unlike the welfare state of USA".

Heresy, go wash your mouth out with soap and water, you wont fit in here with lines like that - the official line here is that the Baht is going to crash and the country will be broke by Xmas, gotit?

Yep that is the official line the expats keep telling themselves.. forgetting that that Thailand has quite a bit of foreign reserve and a trade deficit. Now if there was no deficit.. then things could be different.

please be kind enough and tell me where to find Thailand's trade "deficit"

My apologies, i meant surplus.. Its not logical to see your currency go up when you have a deficit.

[chiang mai]

You are assuming that thee Thai Baht is allowed to float and find its own rate, it isn't. The exchange rate is set at the rate by I assume the BoT. If it was allowed to float the rate would probably be a lot better than it is

It will help you to understand the currency better if you research, "managed float", this approach been adopted by BOT and works well in light of their reliance on US for exprts AND their need to remain within ASEAN currency boundaries.

https://en.wikipedia.org/wiki/Managed_float_regime

[Siamthomas]

Obarma is a goose. And all his hidden errors are unfolding and Trump is left to pickup the cheap foundations and lay solid bricks

[Pib]

Obarma is a goose. And all his hidden errors are unfolding and Trump is left to pickup the cheap foundations and lay solid bricks

Sounds like you already sent Donald a resume/application to work on his Mexican Wall. But I would recommend you also apply for some other jobs as my gut tells me Donald will be relegated to Sarah Palin status and reality shows after the election.

[ggt]

Some of us have been warning about the inevitable decline of the US dollar for some time now...

The US unpayable debt...creating money out of thin air and flooding the market place with dollars when the US economy has been in recession for years...has damaged US Fed and Central Banking credibility...other countries are dumping dollars...other countries are tired of US BS and are beginning to trade for oil in other currencies...other countries do not want to buy US Bonds to help support the US government because of the US leadership's inability to control spending...

The best stores of wealth on the planet are land (location is very important) and Precious Metals (Gold and Silver)

Good Luck!

[1happykamper]

Obarma is a goose. And all his hidden errors are unfolding and Trump is left to pickup the cheap foundations and lay solid bricks

Trump is too much of a liability for the world. IF he gets the nomination..he will be removed.. Somehow..

[SOUTHERNSTAR]

The US$ have declined against a host of currencies not only the Baht. So its not Baht strength but rather dollar weakness. As all markets are now rigged no one really knows why price movements takes place anymore. Since central banks buys stocks the price of stocks don't reflect real value as they buy stocks not based on fundamentals but based on what the boss ordered and the same can be said about bonds (the ECB, Fed and BOJ are good examples). As for FX, its become a tool for governments to fight wars against each other rather than reflecting the relative value of a currencies against each other. In the same week the US warned China and Japan not to decrease the value of their currencies the US$ have comedown hard.

[sometimewoodworker]

Could it have anything to do with the U.S. printing money and actively trying to devalue its currency (so called monetary easing)

Seems folk don't factor that in 0)

Edited May 3, 2016 by sometimewoodworker

[nauseus]

USD is slipping against most major currencies as the Fed failed to raise rates again, after the token raise in December. The Fed is dithering and is scared to spook the Wall St markets with more rate raises. Obama doesn't want any crashes until he's on his 500k speech circuit. The Fed is not part of government but White House influence is significant. The USD and DOW will probably both fall much more significantly soon - unless QE (again) delays a market fall - but the US can't continue with this free money forever.

[craigt3365]

Some of us have been warning about the inevitable decline of the US dollar for some time now...

The US unpayable debt...creating money out of thin air and flooding the market place with dollars when the US economy has been in recession for years...has damaged US Fed and Central Banking credibility...other countries are dumping dollars...other countries are tired of US BS and are beginning to trade for oil in other currencies...other countries do not want to buy US Bonds to help support the US government because of the US leadership's inability to control spending...

The best stores of wealth on the planet are land (location is very important) and Precious Metals (Gold and Silver)

Good Luck!

I've been reading about the demise of the US dollar for many, many, many years. The US economy may not be rocking, but it's far from falling apart. Won't happen in our lifetimes.

[midas]

the main reason why the Dollar is weaker not only vs. major currencies but also vs. "Mickey Mouse" currencies is the FED's, especially Ms. Yellen's, yada yada zigzagging as far as rate hikes are concerned. the expectations of a recovery that justifies a rate hike were not met. as simple as that!

Oh come on it was much more complicated than just yada yada

“…..a less favorable or more uncertain economic outlook as well as a worsening of industry-specific problems affecting borrowers as important reasons. Meanwhile, a significant net fraction of foreign respondents reported a tightening of lending standards for C&I loans “ i.e credit availability is bad and getting worse

[swissie]

Two words explain it - Trump Clinton

Yep.

This time around, it's not about economics. It's about future politics as far as the US is concerned. The world is watching, who will be at the helm of the leading western nation !

The "Donald": A lot of noise and hot air, but offering very little as far as to cure the patient (that is basically already laying in an emergency room).)

The "Hillary": Business as usual. Continue the "trickle-up" effect that has worked so well for the super rich during the last 20 years. The best lobby with the deepest pockets is not to be fond among the "middle-class", that gets poorer with every passing year. Hillary knows where the money is.

With only those 2 choices left, this is reason enough to keep the USD "under pressure", If there is something that global financial markets dislike most it's "uncertainty". The world is watching.

Swiss Francs anyone?

Cheers.

[Meena999]

The Aussie $ is stuffed just like Australia, hope to fix it I've got no idea.

[Ulic]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

The US is far from a welfare state. Just because full time employees at Walmart and many

other companies are on food stamps and medicade does not make it a welfare state, It just

means the government is dysfunctional when it comes to legislating a minimum wage to the

benefit of the family ownership. The 1% downloading responsibility to the middle class.

[ggt]

Some of us have been warning about the inevitable decline of the US dollar for some time now...

The US unpayable debt...creating money out of thin air and flooding the market place with dollars when the US economy has been in recession for years...has damaged US Fed and Central Banking credibility...other countries are dumping dollars...other countries are tired of US BS and are beginning to trade for oil in other currencies...other countries do not want to buy US Bonds to help support the US government because of the US leadership's inability to control spending...

The best stores of wealth on the planet are land (location is very important) and Precious Metals (Gold and Silver)

Good Luck!

I've been reading about the demise of the US dollar for many, many, many years. The US economy may not be rocking, but it's far from falling apart. Won't happen in our lifetimes.

Your view is not held by the Saudi, Russians, and Chinese...who hold much of the US sovereign debt...these countries are slowly trying to uncouple from the US dollar without completely destroying the US government and economy...their investment in dollars is at stake here...they could get pissed and dump them on the market at anytime...causing the demise of the dollar...

Not likely to happen tomorrow...but the purchasing and political power of the dollar is in decline and will continue to be so...

I am 71 now...the collapse in the confidence of the US dollar...at home and abroad... will happen in my lifetime...

[ThailandLOS]

The USD will continue to weaken as the US economy keeps degrading. When zero percent interest rate is all the FED can afford while the economy is supposedly "booming", anyone can conclude that they are feeding people a load of BS statistics.

The USD is not backed by any tangible value, just by how its perceived and needed in terms of the worlds reserve currency. This position is degrading at an accelerating speed with federal QE programs and other government intervention which until recently has created an illusion of strength. Sell USD and buy commodity, silver or gold bullion.

[humqdpf]

There are a number of reasons why the dollar is lower in value against some other currencies.

However, a key reason is the price of oil. One of the main products for which only dollars are accepted is oil. There is currently a lower demand for oil, therefore a lower demand for the dollars to pay for it.

[elgordo38]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

You mean the country with the largest GDP? Great quality of life for people who live there? Ample opportunity to advance yourself? Etc? Comparing the Thai economy to the US is a bit ridiculous. Plus, who knows how the Thai economy is doing. They've admitted to lying about this in the past.

Naam! Where are you? LOL

IMHO, a lot has to do with the stock market and where interest rates are going. The current Fed meeting held rates steady. When they boost them, the USD will probably get stronger. All that hot money will flow back to the US. IMHO. As long as the US economy is still strong....

Worth a read:

http://www.investopedia.com/articles/forex/09/factors-drive-american-dollar.asp

http://video.cnbc.com/gallery/?video=3000514153

The largest GDP well that is a numbers game and the people in charge are known to fiddle with them. Yes everybody presumably is living the good life with stagnant wages, welfare etc. but its all about the money honey all this good life takes money and lots of it. A 19 TRILLION dollar debt is the result forget about states that are on the verge of bankruptcy. All together your looking at 200 TRILLION in debt. Can you give me a hamburger today and I will pay you tomorrow?

[elgordo38]

As an ordinary joe, I also find the exchange rates a mystery and black art.

My only conclusions are that interest rates are the key, and the failure of the US to raise them had a major effect .

The Thai economy baffles me - but then I'm no economist. They seem to have money to throw around everywhere and yet I don't quite understand where it all comes from. In Pattaya (a bad example I suppose) almost everyone seems to have 'cash in hand' for work. Someone once told me it's all to do with the country's 'debt' situation and Thailand's is good in that respect.

We just have to grin and bear the 'yo-yo' of exchange rates. There seems to be no stability at all. As a Brit we are 'allegedly' suffering from the forthcoming referendum. I say allegedly, because if there were a 'remain' decision,and the pound took a boost, within days there would be some gloomy 'announcement' from the Bank of England or Chancellor in order to weaken the currency. I have no idea if American exporters grumble about the 'strength' of the dollar.but many UK companies complain the pound is too strong.

It's all a game in my view and currency 'strengths' seem to bear no relationships to the economic well being of the country.

Your right look at Japan trying to weaken the yen by going deeper into negative interest territory and all they get in return is a appreciating currency. They are one of the most indebted nations in the world so go figure. The yen is on the buy list of many currency traders.

[elgordo38]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

"Thailand economy is not that bad. Everyone works here unlike the welfare state of USA".

Heresy, go wash your mouth out with soap and water, you wont fit in here with lines like that - the official line here is that the Baht is going to crash and the country will be broke by Xmas, gotit?

Thats been the official line since 1976 lol..still waiting

Did 1997 come after 1976? Any lessons learned since then.

[Kabula]

Because the true value of the dollar is worth about 3 cents!

Over printing, back by nothing combined with low interest rates for ten years.

Too many wild cards to keep it up. All the cards have been played out.

Some foreign countries are selling U.S. Treasuries, bonds and returning dollars now. The same countries are phasing out using the dollar in International trade.

More and more people are selling dollars for commodities that have been increasing in value or buying a basket of foreign currencies.

Why do you think there have been so many emergency meetings recently and discussed in the main stream news?

There are many more reasons, but you need to do your own research because you would not believe it.

History has revealed that over many years all paper currencies fail.

And people are shocked when it happens because they didn't listen to anyone and believed nothing.

Of course no one wants to hear the truth! Many don't even read the financial news any longer.

[flyingdoc]

Maybe the dollar is going down due to the backlash of Barack Obama trying to influence the outcome of Brexit, and clearly failing! Also the prospect perhaps of Donald Trump actually making it to the nomination!!

[midas]

Because it was way overvalued and commodities are going up?

Thailand economy is not that bad. Everyone works here unlike the welfare state of USA.

You mean the country with the largest GDP? Great quality of life for people who live there? Ample opportunity to advance yourself? Etc? Comparing the Thai economy to the US is a bit ridiculous. Plus, who knows how the Thai economy is doing. They've admitted to lying about this in the past.

Naam! Where are you? LOL

IMHO, a lot has to do with the stock market and where interest rates are going. The current Fed meeting held rates steady. When they boost them, the USD will probably get stronger. All that hot money will flow back to the US. IMHO. As long as the US economy is still strong....

Worth a read:

http://www.investopedia.com/articles/forex/09/factors-drive-american-dollar.asp

http://video.cnbc.com/gallery/?video=3000514153

The largest GDP well that is a numbers game and the people in charge are known to fiddle with them. Yes everybody presumably is living the good life with stagnant wages, welfare etc. but its all about the money honey all this good life takes money and lots of it. A 19 TRILLION dollar debt is the result forget about states that are on the verge of bankruptcy. All together your looking at 200 TRILLION in debt. Can you give me a hamburger today and I will pay you tomorrow?

" living the good life with stagnant wages "

It won’t be such a good life for many a week before the elections when the people with stagnant wages receive notification of a big increase in Obama care insurance premiums - in some cases double-digit increases (watch the headlines)

[uthaithanirules]

As an ordinary joe, I also find the exchange rates a mystery and black art.

My only conclusions are that interest rates are the key, and the failure of the US to raise them had a major effect .

The Thai economy baffles me - but then I'm no economist. They seem to have money to throw around everywhere and yet I don't quite understand where it all comes from. In Pattaya (a bad example I suppose) almost everyone seems to have 'cash in hand' for work. Someone once told me it's all to do with the country's 'debt' situation and Thailand's is good in that respect.

We just have to grin and bear the 'yo-yo' of exchange rates. There seems to be no stability at all. As a Brit we are 'allegedly' suffering from the forthcoming referendum. I say allegedly, because if there were a 'remain' decision,and the pound took a boost, within days there would be some gloomy 'announcement' from the Bank of England or Chancellor in order to weaken the currency. I have no idea if American exporters grumble about the 'strength' of the dollar.but many UK companies complain the pound is too strong.

It's all a game in my view and currency 'strengths' seem to bear no relationships to the economic well being of the country.

2/3 of Thai GDP comes from exports, manufacturing, agriculture, less than 10% is tourism. From memory half the thai workforce is employed in agriculture

Any economy heavily dependant on agriculture is reasonably bullet proof. Even in the midst of a real crappy El Nino and the rice price plummeting you still dont see the flow on effects compared to say with a too oil dependant country like Russia and the oil price plummeting.

With manufacturing Thailand is in that goldilocks range, can still outbid China in some areas, but not too dependant on manufacturing for slowdowns to hit like they have with China

As for public debt, welfare is fairly non existant. Go hunting on the net for info on how high the percentage of the public debt with some western countries is welfare

The thai currency jumps around seasonally as agriculture, manufacturing and tourism are all seasonally dependant

Of course you dont see all the manufacturing across the country, thats where most of the money comes from

But basically, enough fingers in enough different pies, a strong agricultural sector to fall back on, and none of the ridiculous nanny state cost driving up public debt ( a crapload of corruption though) is why the Thai economy is in an ok state