Baht Continues to Weaken

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Gaybutton
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Re: Baht Continues to Weaken

Post by Gaybutton »

I'm hoping by the beginning of October the rate is in the 37s - or better. Unless something happens that halts or reverses the trend, it could certainly work out that way.

Of course, if given a choice, I'll take the "or better" . . .

This month, those of us on US dollar pensions who use Wise probably received (or soon will receive) several thousand baht more than we've seen coming our way for quite some time. After so many years, I hope the wheel has finally turned our way for a change - and will stay that way.

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Re: Baht Continues to Weaken

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"In the land of the blind the one eyed man is king"

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Re: Baht Continues to Weaken

Post by Gaybutton »

At the time of this post, the Wise exchange rate has reached 37.065.

Do you see me smiling . . . ? In fact I'm going to do something I never do - add a smilie to my post.

:D

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Re: Baht Continues to Weaken

Post by Undaunted »

Haven’t seen this rate in 19 years:

"In the land of the blind the one eyed man is king"

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Re: Baht Continues to Weaken

Post by Gaybutton »

Undaunted wrote:
Fri Sep 16, 2022 2:39 pm
Haven’t seen this rate in 19 years
And it's about time too! My only real surprise is it took this long for it to start happening. However, I'm happy to take what I can get. I hope it continues and this time it lasts for us a good 19 years or more.

Personally I've had enough of seeing my pension income rise every year, but due to the miserable exchange rates for so long, often ending up netting less.
____________________________

Baht falls below 37 to the dollar

September 16, 2022

The baht fell past 37 to the US dollar — its lowest since December 2006 — as several Asian currencies hit multi-year lows on Friday.

The baht was trading around 37.1 to the dollar in offshore markets on Friday afternoon. Locally, the weighted-average Interbank Exchange Rate was quoted at 36.714 at the close of trade on Thursday, according to the Bank of Thailand.

The Chinese yuan also weakened past the psychologically important 7-per-dollar level, while bets of a big US Federal Reserve rate hike next week boosted Treasury yields and kept dollar demand intact.

The Taiwanese dollar slipped to its lowest since September 2019 and the South Korean won reached a level last seen in early 2009.

The yuan had fallen below 7 per dollar only twice since the global financial crisis of 2008, and its crossing of the level could now stoke fears of capital outflows from China. But several state media outlets published commentaries that sought to stabilise market expectations by playing down any significance of the level.

“We are in a very strong dollar environment, which is very hard to go against, and so (the People’s Bank of China) won’t be looking to defend any particular level rigorously. … It’s really all about managing the pace of the moves,” said Khoon Goh, head of Asia research at ANZ.

The won, the worst performing emerging-market currency in Asia so far this year, fell 0.2% and was on course for a sixth straight weekly decline against the dollar.

Verbal warnings and likely dollar selling from the South Korean foreign exchange authority on Thursday appeared to have provided some temporary relief to the won. But analysts have warned that defending currency levels is very costly and, if unilateral, unlikely to be effective.

On Friday, a finance ministry official in Seoul said the government would meet with major exporters and importers early next week to prepare measures to stabilise the dollar-won currency market.

Markets in Malaysia were closed for a holiday. India’s rupee fell 0.2%, while the Indonesian rupiah hit a more than six-week low.

“So long as (the yuan) remains weak, you’re quite likely to see Asian underperformance in aggregate,” said Galvin Chia, an emerging markets strategist at NatWest Markets. He expects the weakness to be centred around currencies such as the won, Taiwan dollar and the Malaysian ringgit.

Stock markets in Asia were also weaker, with Indonesia on track for its worst session since early July after rising to a record on Thursday. Equities in Jakarta, Taipei, Seoul and Mumbai dropped between 0.7% and 1.7%. Shares in Shanghai fell more than 1.5% to a four-and-a-half-month low, even as data showed China’s economy had been surprisingly resilient in August.

Faster-than-expected growth in factory output and retail sales shored up the recovery from the effects of Covid. But China’s property sector contracted further, with home prices, investment and sales extending losses.

US two-year Treasury yields hit a fresh 15-year high overnight after data on retail sales and jobless claims showed a resilient economy that gives the Federal Reserve ample room to aggressively hike interest rates when it meets next Tuesday and Wednesday.

https://www.bangkokpost.com/business/23 ... the-dollar

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Re: Baht Continues to Weaken

Post by traveller123 »

Enjoy it, I hope it lasts a long time.
I wish those of us from the UK were receiving a similar rise.

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Re: Baht Continues to Weaken

Post by Gaybutton »

traveller123 wrote:
Fri Sep 16, 2022 4:18 pm
I wish those of us from the UK were receiving a similar rise.
So do I. It's about time for you gents too.

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Re: Baht Continues to Weaken

Post by travelerjim1 »

WISE Saturday September 17... 36.82 / $

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Re: Baht Continues to Weaken

Post by Jun »

traveller123 wrote:
Fri Sep 16, 2022 4:18 pm
Enjoy it, I hope it lasts a long time.
I wish those of us from the UK were receiving a similar rise.
I suspect the Bank of England will need to raise interest rates considerably before the GBP strengthens.

Unfortunately they postponed the September announcement for 2 weeks.

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Re: Baht Continues to Weaken

Post by Gaybutton »

Uh-oh! I definitely don't like this. I hope the BoT won't rain on our parade:
_________________________________________________________________

Plummeting baht gives Americans more buying power in Pattaya

By Pattaya Mail

September 18, 2022

The Bank of Thailand on Friday said it was ready to intervene to counteract sudden, further depreciation of the baht against the U.S. dollar, which hit a 16-year-low this week.

One of Asia’s worst-performing currencies this year, the baht hit 37 to the dollar on Friday, the weakest since December 2006. It has fallen about 10% against the greenback this year.

“The BoT is closely monitoring the movement of the baht and is ready to take action when the baht moves in an unusually volatile way in order not to affect the adjustment of the real economy,” Assistant Governor Alisara Mahasandana said in a statement.

Pattaya Deputy Mayor Thitiphan Phettrakul is ready to take advantage of the weaker baht, which gives tourists from dollar-based economies more spending power.

It’s notable, however, that while the baht has plunged against the dollar, it has not seen the same appreciation against the British pound or euro. On Saturday, the pound fetched 42 baht and 37 euros. That’s only a one-baht difference from 10 days ago.

The baht’s volatility against the dollar is due mainly to external factors, including expectations of more aggressive U.S interest rises and deteriorating risk sentiment in emerging Asian markets after China’s yuan had fallen below seven a dollar, the central bank statement said.

There’s also a specific factor for Thailand due to falling gold prices, resulting in more dollar buying by gold companies.

Poon Panichpibool, a market strategist at KTB-Krung Thai Bank, said if gold prices rebound, the baht will stabilize.

https://www.pattayamail.com/latestnews/ ... aya-410716

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