Baht What up with Dat?????

[bumper]

They interviewed Koon Korn today on CNBC, straight up guys he doesn't care what America does he only interested in China. I can only assume based what we seen that applies to all Western Economy's.

He anticipates another interest rate rise of.25%, before the end of the year.

[cookie]

as predicted :

Baht may hit 13-year high on fund inflows
By THE NATION, BLOOMBERG

Thailand has witnessed a continued increase in net capital inflows, expected to keep the baht on the appreciation path probably to a level unseen since 1997.

According to the Bank of Thailand, in July, net capital inflows were worth US$2.7 billion (Bt84 billion), which went to all parts of the economy, including $987 million to non-bank business.

Mathee Supapong, director of the central bank's domestic economy department, said inflows to the non-bank sector were either foreign direct investment or investment in the stock market. The banking sector attracted only $571 million, mostly short-term financing and some as investment in banking shares through the stock market.

London-based Barclays predicts that the baht may strengthen to levels not seen since 1997 over the next year as accelerating growth encourages foreign investors to keep pouring money into the nation's assets.

The baht could appreciate 1 per cent to 31 per US dollar over three months, 1.8 per cent to 30.75 in six months and 2.6 per cent to 30.50 in a year, Singapore-based economist Rahul Bajoria wrote in a research report. In January, the bank forecast that the baht would advance to 31.75 in a year.

"We expect the baht to enjoy continued trend appreciation, as the external position remains robust," Bajoria wrote. "Strong inflows into local-currency bond and equity markets, along with current-account surpluses, should generate further upward pressure on the currency."

Last month, the baht advanced 3.2 per cent, its biggest monthly gain since February 2008. According to Bloomberg, it advanced to 31.29 per dollar.

"There will be more willingness on the part of the central bank to let the currency appreciate," Bajoria said. "The appreciation is going to be in line with regional currencies, so it's not going to harm the competitiveness of the external sector."

Mathee said the Bank of Thailand had no specific level where the baht would go, but would maintain equilibrium with regional movements. This should limit negative impacts on exporters.

The currency drew support from government data showing that growth in gross domestic product in the first two quarters, at 12 per cent and 9.1 per cent, was the best since 1995.

According to the Bank of Thailand, the economy in July kept expanding, though at a slower rate than in the previous month. While private consumption, exports and manufacturing slowed because of sharp growth in the first half, tourism showed continued recovery. In the month, Thailand welcomed 1.25 million visitors, up 14.9 per cent year on year, while the hotel occupancy rate stayed at 46.9 per cent compared with 37.3 per cent in the previous month.

Private investment rose 22.1 per cent year on year, mostly in the electronics, electric-appliance, automobile and construction sectors. Private consumption rose 5.1 per cent on-year, while exports at $15.48 billion rose 21.2 per cent. Industrial manufacturing expanded 16.3 per cent, down from 21.9 per cent in June. Inflation in the month accelerated on higher fresh-food prices and higher industrial and retail employment.

The central bank is widely expected to raise the policy rate again next month to 2 per cent.


-- The Nation 2010-09-01

[nkstan]

Hit 31.13 today!I think we will see it in the 30-31 range within a couple of weeks to the end of the month!

[bumper]

My normal transfer was 4K less today. I might beat the banks but not so sure on the rate of exchange

[bumper]

Breakingnews » Breakingnews
BoT: New baht controls 'unneeded'

* Published: 1/09/2010 at 03:55 PM
* Online news: Economics

The baht's current appreciation is in line with the country’s strong economic fundamentals and additional measures to curb its strength are not necessary, Bank of Thailand (BoT) governor Tarisa Wattanagase said on Wednesday.

“The currencies of all other countries in Asia are also strengthening, not only the Thai currency. But the central bank is ready to oversee the value of the baht to prevent it from fluctuating too much,” Mrs Tarisa said.

She was confident the public sector would be able to adjust and survive the strong baht.

Asked about Prime Minister Abhisit Vejjajiva's calling of a meeting of the Council of Economic Ministers at 7am tomorrow to discuss the baht situation, the BoT chief said she was ready to provide information on the central bank's decisions and the details of recent foreign capital inflows..

Mrs Tarisa stressed that the BoT is duty-bound to curb the baht's fluctuation, but it could not fix the Thai currency’s exchange rate at a certain level. The baht's movement depends on demand and supply in the money market.

“This means that if the Thai economy is strong, more foreign capital will flow in and this results in the baht's appreciation,” she said.

She admitted that the baht's strengthening was too rapid, from 3.5 per cent due to the political unrest to 6.4 per cent in June,.

However, current capital inflow was not mainly for profit speculation. Investors wanted the higher rate of return, which was normal.

The same thing was happening in other countries in Asian region, not only in Thailand, she said.

[nkstan]

Posted on Thai Visa today,for the first time in ages,and was shocked to see they have 29.96 baht to USD as their midday rate!
I quickly checked Yhoo and it was at 31.13.

[trubrit]

Posted on Thai Visa today,for the first time in ages,and was shocked to see they have 29.96 baht to USD as their midday rate!
I quickly checked Yhoo and it was at 31.13.

Bangkok Bank 29.96 Kasikorn 29.99 . Both for a single cash dollar . Is there such an animal ?

[Aardvark]

I hit Town Tomorrow week and am very pleased with the Aussie at 28.3. Last time it was 21.5, that hurt

[bumper]

I didn't get thirty on the exchange this week after the bank fees. This is going to hit long term retirees, living on fixed incomes very hard

SCB: Baht to hit 30.7 in 2011

* Published: 4/09/2010 at 12:00 AM
* Newspaper section: Business

The baht could reach 30.70 to the US dollar in 2011 thanks to capital inflows and a current account surplus, says chief economist Sethaput Suthiwart-Narueput of Siam Commercial Bank.

A stronger baht would be moving in line with regional currencies under the Asia Dollar Index, as the dollar is expected to continue to weaken due to the sluggish US economic recovery.

The baht has been one of the best performers in the region this year, and traded yesterday at 31.17/20 to the greenback. This year the baht has strengthened nearly 7% against the dollar, second only to the Malaysian ringgit's 9% rise among Southeast Asian currencies.Dr Sethaput said foreign capital was expected to continue to flow into Asia in search of higher returns on investment. Thailand's stock and bond market would benefit from the fund inflows, a key factor for the baht appreciation. By the end of 2010, the bank estimates the baht will strengthen to 31.10 to the dollar.

Dr Sethaput projects the Thai economy will grow in a range of 3.5% to 4.5% in 2011, compared with estimated growth of 6.5% to 7.5% in 2010. The bank expects slowing growth in almost all major world economies. Much of the recent global growth has been driven by one-off factors such as stimulus spending and inventory rebuilding which are wearing off. The slowing global economy will weigh on exports.

Unfortunately, domestic demand is unlikely to fill the gap of falling exports as the overall environment is not conducive to rapid growth in private demand: the baht will be stronger, interest rates and oil prices will be higher, and the overhang of political uncertainty is likely to remain, he said.

Lower export demand and a stronger baht will weaken the key sector driving gross domestic product growth. SCB expects the country's export growth rate will decline to 12% next year from 25% this year, cutting GDP growth by four percentage points.

Next year, Thai economic growth will be driven by the three core business sectors of agriculture, services and manufacturing. Agricultural products are expected to grow 3% annually for a five-year period, compared with 2% from 2005-2009. The rise would support Thai GDP growth of 0.2 percentage points.

The service sector will contribute 1.5 percentage points to GDP growth next year if tourism recovers, with the manufacturing sector dipping two percentage points on a weak global economy.

[virginprune]

Considering the strength of the baht against the comparative weakness of western currencies, at this time. Does anyone think that it would be a good idea to change all your money into baht? For example, a lump sum from a property sale in the homeland...if the aim is to fully retire in Thailand.

[nkstan]

Considering the strength of the baht against the comparative weakness of western currencies, at this time. Does anyone think that it would be a good idea to change all your money into baht? For example, a lump sum from a property sale in the homeland...if the aim is to fully retire in Thailand.

At the moment,probably yes!But you might want to consider other Asian currencies also!

[NOLA]

I got 30.96 on my monthly transfer...Down from 32.03 last month.

[virginprune]

At the moment,probably yes!But you might want to consider other Asian currencies also!

Thanks Stan, never thought of other options! Time to do a bit of homework!!

[bumper]

Here we go again another do nothing committee.

FTI, Commerce Ministry to Rein Baht Appreciation
UPDATE : 3 September 2010
The Commerce Ministry and the Federation of Thai Industries have jointly form a committee to address the rising value of the Thai baht. The strong baht has begun to impact exporters while showing no sign of weakening.

Federation of Thai Industries, or FTI, President Payungsak Chatsuthipol disclosed that the federation and the Commerce Ministry have formed a committee to deal with the rising baht value.

The panel is searching for measures to slow down the rapid appreciation of the Thai currency.

Payungsak stated that the private sector has to take the matter into its own hand due to the Bank of Thailand's and Finance Ministry's view that the baht value remains acceptable.

He explained that although the baht appreciation is in line with other currencies in the region, other nations do not depend as heavily on export as Thailand.

Commerce Minister Porntiva Nakasai spoke of the committee's formation, saying that her ministry is taking serious action in assisting the export sector as many traders have been unable to deal with the baht appreciation.

She said that the ministry's help will ensure the export industry achieve the targeted growth of 20 percent.

The baht opened at 31.14 against the US dollar this morning with a strong likelihood of appreciating to 31 baht tomorrow.

[lepidoptra]

The baht opened at 31.14 against the US dollar this morning with a strong likelihood of appreciating to 31 baht tomorrow.

Maybe my English is not so good these but how can it appreciate from 31.14 to 31baht. I've only got an O level English GCE. Anyone with an A level GCE please put me back on the right track:-s

[bumper]

Mean it will go down 14 satang

[JimboPSM]

The baht opened at 31.14 against the US dollar this morning with a strong likelihood of appreciating to 31 baht tomorrow.

Maybe my English is not so good these but how can it appreciate from 31.14 to 31baht. I've only got an O level English GCE. Anyone with an A level GCE please put me back on the right track:-s

Current convention has it that the exchange rate between Thailand and the USA is shown as the number of THB that can be bought for one USD, not the number of dollars that can be bought by one THB.

So for the USD/THB exchange rate:

• • A reduction is actually an appreciation of the THB (or a depreciation of the USD).
  
  • Conversely an increase is actually a depreciation of the THB (or an appreciation of the USD).

[bumper]

It's not just the baht, dollar is being hit by lots of currencies, not that it makes me feel any better.

Business News

Ringgit opens at 13-year high
Posted: 06 September 2010 1120 hrs

KUALA LUMPUR: The ringgit opened 13-year fresh high against the US dollar in early trading today on strong demand for the local currency, dealers said.

At 9.05am, the ringgit was quoted at 3.1100/1130 from 3.1200/1220 on Friday.

A dealer said the demand for the ringgit was driven by interest in both bond and stock markets as investors believed the US dollar would continue to weaken.

The dealer said the appetite for riskier assets emerged after the data showing fewer-than-expected US job losses bolstered optimism the economy would not slip into recession.

"Definitely investors will not hold on to the US dollar. They may want to sell it off and put their investments in other currencies. With that, the ringgit will benefit," the dealer said.

Against other major currencies, the ringgit rose against the Singapore dollar to 2.3126/3166 from 2.3152/3188 on Friday and the Japanese yen to 3.6861/6901 from 3.6971/7017 last week.

The ringgit was also traded higher against the British pound to 4.8018/8071 from 4.8036/8076 but it declined against the euro to 4.0044/0099 from 4.0023/0058 on Friday.

-Bernama/wk

[bumper]

More of what we have seen many times before.

Ministers to Meet on Baht Appreciation
UPDATE : 6 September 2010
The commerce minister has scheduled a meeting with the finance minister to tackle the strengthening baht while calling on the central bank to be more careful with its interest rate policy.

Commerce Minister Porntiva Nakasai admitted to concerns over the baht's rapid appreciation as it has begun to impact exporters.

Traders have warned that if the currency breaks through 30 baht against the US dollar, export growth this year could fall short of the targetted 20-percent expansion.

Porntiva will tomorrow meet with Finance Minister Korn Chatikavanij to discuss the situation and possibly brainstorm on preliminary solutions to help Thai exporters cope with the strong baht.

She also plans to ask Korn to instruct the Bank of Thailand, or BOT, to carefully consider its policy interest rate adjustment. The movement of the central bank's policy rate directly affects the movement of the baht.

The commerce minister today presided over the rice handout to locals in Pattani province.

She commented on the recent event when mold was found on government-issued rice, saying the rice may have gone bad during the transport.

The minister assured that a probe has been launched to get to the bottom of the matter.

[bumper]

The answer we all waiting for

Same old proceedures same ending

B

reakingnews » Breakingnews
BoT says euro weakening baht

* Published: 7/09/2010 at 02:41 PM
* Online news: Breakingnews

The baht has weakened due to the depreciation of the euro against the US dollar, Bank of Thailand assistant governor Suchada Kirakul said on Tuesday.

"The baht's weakening today is not caused by the central bank's intervention. It is moving in the same direction as other regional currencies," Mrs Suchada said.

She said the euro had depreciated because Europe's stress test results were not good.

The Thai currency today fell to 31.18-31.20 baht per US dollar from yesterday's close of 31.14-31.16 baht.