USD tanking against Thai baht.

[Jackie-boy]

Thailand: Bye Bye Baht If Bank Of Thailand Cuts Rates Again

By Shuli Ren

The Thai baht has fallen more than most of its peers, down 3.5% against the U.S. dollar in July.

Baht’s weakness this month is all the more striking considering “the currency’s relative resilience versus the US dollar previously,” wrote UBS‘s Edward Teather this morning.

The threat of a rate hike from the Federal Reserve Bank aside, the Bank of Thailand also seems to encourage the baht to weaken (to attract Chinese tourists?). The central bank cut its benchmark interest rate in April, and in recent days, the governor re-iterated that Bank of Thailand has no targeted level for the baht and that the recent move has been a mere “correction.” Thailand’s Deputy Prime Minister Pridiyathorn was quoted saying that he’d “like to see the baht depreciating a little more” but then he also that “it’s almost at the right level.”

The Bank of Thailand will meet again next week on August 5 to decide whether to cut interest rate again.

How independent is the Bank of Thailand really? The central bank may be tempted to cut rate again to encourage growth. “Drag from mainstream Asia and European demand for goods is outweighing the positive impact from Chinese tourists and goods demand from Frontier Indochina,” wrote Teather. This is not a consensus view according to economists surveyed by Bloomberg, however. Most expects the central bank to stay put.

This month, the U.S.dollar-denominated iShares MSCI Thailand Capped ETF (THD) slumped 9%, making Thailand the worst performer in ASEAN.

http://blogs.barrons.com/asiastocks/2015/07/31/thailand-bye-bye-baht-if-bank-of-thailand-cut-rate-again/?mod=yahoobarrons&ru=yahoo

[urleft]

Well there's a good possibility the baht will tank to 36 to $1.   Rate just posted of 35.79 to $1. 

[DeputyDavid]

 

[urleft]

Wooooo Wooooo   36.04 to $1 !!!!!!!!!!!!!!!!!!!!!!!!

[urleft]

Well last month the rates almost hit 33 to $1, but has since been in a downturn, generally about 32.5 to $1. 


What is interesting is that about the same thing happened last year at about he same time frame with the baht getting weaker in the spring. 


Still much better than two years ago when the rate was 28 to $1

One reason I keep adding to this thread is the history factor.  It has been that in the last 2 years the Baht was high in December.  So while the baht just broke 36 to $1 it may be even higher in December. 

I transferred some money last month, kind of wish I would have waited until this month.  But I am will be monitoring December and January to another transfer based on rates, not need. 


As I have said before, try to transfer money when it is in your favor, not when you have to have the cash. 

[KhunG]

I understand your point, but I do things on a schedule.  Two transfers a year, Jan and Jun or Jul.  Like stocks, I may not always buy at the lowest, or sell at the highest, but I always know where we stand.  Works for me.

[urleft]

Wow, almost all the bank TT rates are over 36!


 

[urleft]

36 didn't last long, the rates are slowly descending, currently about 35.75 to $1. 

[urleft]

Well maybe not so slowly, looks like they dropped another .25 baht for make the rates under 35.5 to $1 for the weekend. 

[toffo]

Didn't have the Balls to Raise the interest Rate that's why it's Declining....golds gone up also on that Decision...helping china by not raising...

[urleft]

Kind of weird, baht rate for notes usually decrease with smaller denominations, however, the highest rate on notes is for USD one dollar bill (.4 baht difference), been this way for 2 days. 

[gotlost]

Xe 36.10

[urleft]

Fairly significant jump in the rates to about 36.4 to $1.   Hopefully 37 or better by Christmas. 

[urleft]

Well not sure the cause yet, but the Baht was 35.6 to $1 around 9am, but has fallen to 35.2 to $1 a few minutes ago.   

[toffo]

A good chance it's this


http://www.wsj.com/articles/fed-doubts-grow-on-2015-rate-hike-1444866104