Baht closes at 33.66 baht/dollar, the strongest in 25 months

By Thai PBS

 

 

The Thai baht closed at 33.66 baht against the US dollar, the strongest in 25 months after the currency was trading between 33.73-33.75 baht/dollar throughout Monday (July 17), said Jitipol Puksamatanan, a currency and capital markets strategist of the Krung Thai Bank.

 

He attributed the quick strengthening of the Thai baht to massive sale of US dollars coupled with the inflow of foreign capital, including fund flow for the takeover of LH Bank.

 

Mr Jitipol noted the quick strengthening of the baht coincides with the weakening of the US dollar which is unlikely to get stronger while the Bank of Thailand is reluctant to intervene.

 

Full story:  http://englishnews.thaipbs.or.th/baht-closes-33-66-bahtdollar-strongest-25-months/

 

-- © Copyright Thai PBS 2017-07-18

 

10 hours ago, webfact said:

the weakening of the US dollar which is unlikely to get stronger

With the current health care bill in the Senate in trouble with now four Senators publicly against the bill (assuming McCain returns to vote for the Senate version), the bill will not come to the floor for a vote. Unless the Senate in the alternative simply repeals ACA following the Cruz bill, tax reform that gives billions of dollars to the nation's wealthiest top 10% will fail and the USD will drop further in value. That will drive the baht higher in comparative value unless the BoT raises interest rates.

But a paradox will develop. Raising rates when household debit is at a nine-year high will further drive debt higher and make SME loans necessary for economic expansion more difficult to acquire. So if BoT refuse making any currency adjustments, the GDP rate drops. Catch-22. Lose-lose situation.

BS here is the chart I was getting almost 36 in December

1 hour ago, lesmac said:

BS here is the chart I was getting almost 36 in December

 

Yes, and what is your point?