Dollar versus Baht

Leaving for LOS on May 9, my fourth trip. I checked on the exchange rate and found either the dollar is weakening or the baht is getting stronger. Anybody have a clue as to what is going on? 38 to 1 is not my favorite ratio. Besides, my calculator is burnt out. Normally at this point I would head over to Gaybutton. He usually had some good info on this. But the times are no longer normal. "Ou sont les Gaybuttons de longtemp?"Sure miss that site.

[bing]

You might try oanda.com ,,,,,, they have a neat converter set up.

[American Teacher-old]

Yesterday we were down to 36.9... It's not looking good.

-Chris

Can somebody convince me that these exhange rates are not being manipulated?

It is almost absurd that a country in such political turmoil should have its currency reach a 7-year high against the US dollar, especially when the US economy shows no serious slowdown or problems. OK, OK, there are problems: e.g. George Bush, but in spite of him the economy itself seems to be faring well these days, no?

Doesn't it hurt Thai exports to have such a surge in the exchange rate?

Now another question: who would be able to manipulate these rates?

The US is deeply in debt and US interest interest rates keep rising, which means the US has to pay more to foreign lenders to borrow the ever increasing amounts of needed cash. The general long term trend of the US dollar is DOWN against all currencies.

[American Teacher-old]

Indeed, you summed that up very nicely and in a user-friendly way. The bottom line is that the USA is in big trouble economically and globally. Keeping an eye on the Chinese economy and the American debt/spending ratio -- it will not be too long before the super powers switch. The days of the good 'ol USA being in control are numbered.

-Chris

[Up2U]

Finance Minister wants the USD rate at around 39 THB, from the Nation:

http://www.nationmultimedia.com/2006/04 ... 001529.php (http://www.nationmultimedia.com/2006/04/12/business/business_30001529.php)

[wowpow]

There are comments regarding the current strong Baht on a very recent trail The Baht to the UK┬г. It is all to do with the strength of the Baht not the weakness of the Dollar. Tha baht has risen dramatically against all major currencies.

This makes buying gasoline cheaper but pushes up the price of the exports.

One way to deal with Thai currency risk is to buy a condo and/or other Thai based investments. Then, when the baht goes up, you win AND lose. And, when the baht goes down, you win AND lose. So, you can ignore it more. Only trouble is I have yet to figure out how to eat a condo.

Tdperhs
You donтАЩt need to head on over to Gaybuttons site for the latest rates, go to The Bangkok Bank website for up to date rates in all the major currencies. They update the page every day around 10am Bangkok time and you will know for sure what your currency will be exchanged for on that day. I find it very useful.

http://www.bangkokbank.com/Bangkok+Bank ... +Rates.htm (http://www.bangkokbank.com/Bangkok+Bank/Web+Services/Rates/FX+Rates.htm)

[Doug]

A good currency calculator can be found here.

http://www.x-rates.com/calculator.html

I think we may see a weak dollar for some time to come -- good for American exports, I suppose, but bad for those of us who are paid in currencies pegged to the dollar. Signs of the dollar's recovery? Look for a plethora of oil to be discovered somewhere, or for some sort of plague to strike down their idiot president and the apes who voted for him. Failing that, Wall Street gave this administration a vote of no confidence only weeks after inauguration, and the war in Iraq will have dashed any hopes of a strong dollar for years to come. Now if I could only be paid in Sterling again... (!!)

Thaiquila: good thinking about the condo. May I suggest a simple sauce composed of creme fraiche, dijon mustard and a bit of freshly cracked black pepper?

Yes, but how does one tenderize concrete?

Yes, but how does one tenderize concrete?

I should think that vinegar might do the trick -- you may try the slightly sweet Shanghainese black vinegar as a nice alternative to balsamic (here in Hong Kong we dip our crab in it...).

Or if you are in Thailand, and have access to their wonderful limes, you may consider using lime juice ...

I do not, however, recommend the tenderising block -- they are far too noisy and your neighbours may complain

Yes, but how does one tenderize concrete?If you're patient you buy a condo and wait for it to fall down. At that point the concrete has been pulverized

Yes, but how does one tenderize concrete?If you're patient you buy a condo and wait for it to fall down. At that point the concrete has been pulverized
Another thing to live for! :flower:

It is all to do with the strength of the Baht not the weakness of the Dollar. Tha baht has risen dramatically against all major currencies.
How can the baht be so strong? What is the secret ingredient in the Thai economy which buoys up the currency? Unless, of course, somebody is playing with the currency behind the scenes?

I will concede that Herr Bush has plundered the cash reserves in America thus affecting the exchange rate against the USD, although other currencies such as the Japanese yen have not risen as much as the baht.

Other major currencies are also falling against the baht? Why?

There was a rally in response to the so called "resolution" of the Thaksin political crisis.

[wowpow]

http://img.photobucket.com/albums/v27/wowpow/Dollarbaht.png US$ - Thai Baht 12th April

http://img.photobucket.com/albums/v27/wowpow/Euro.pngEURO

http://img.photobucket.com/albums/v27/wowpow/baht.pngUK POUND

I found it strange that the baht did not seem to weaken perceptibly during the political crisis and any rally was just a blip.

It is just that the Thai economy is doing very well plus the Bt1.8 Billion in cash on the sale of the Shin Corp and money is coming in for a takeover bid for a Thai steel company.

EXPORTS
Rising baht hurting traders

Strong currency may start cutting into competitiveness

Rice traders have suffered from the recent strengthening of the baht, and exporters in other fields are expecting poorer performance if the Thai currency keeps escalating against the US dollar, making Thai products more expensive for global buyers.

They now fear that Thailand might not achieve its export income target, set at US$130 billion (Bt4.96 trillion) based on an exchange rate of Bt40 to the dollar, while some products, particularly shrimp and rice, could lose their No-1 position in the world market.

Thai Shrimp Association president Somsak Paneetatyasai said the stronger baht would directly reduce the country's export competitiveness, because exporters must quote higher prices.

"The government has undertaken a managed-float currency for years, which leads to export difficulties whenever there is a stronger baht," he said.

The baht strengthened to a six-and-a half-year high, briefly touching Bt37.98 to the yesterday morning. Exporters, however, prefer an exchange rate of Bt40 to the dollar, because a weak baht would help them offset extra costs resulting from steep fuel prices and higher interest rates. They say a strong baht would make products from rival countries more attractive.

Thailand is now the world's biggest shrimp-exporting country, with an average of 300,000 tonnes per year going to major export markets like the US, the EU and Japan. It also exports about 7.5 million tonnes of rice annually.

Export income is now the main engine driving the Thai economy. Without the burgeoning growth in the export account, Thailand could have recorded larger trade- and current-account deficits.

"If our exports are worth $1 million, each Bt1 increase to the dollar will result in a loss of Bt1 million," said Thienchai Mahasiri, president of the Thai Garment Manufacturers' Association. However, he said most members of his association had prepared for the situation by buying currency-hedging contracts. He said the association has targeted export growth this year of 8 per cent, to Bt145 billion.... more on

www.nationmultimedia.com/2006/04/11/business/business_30001437.php (http://www.nationmultimedia.com/2006/04/11/business/business_30001437.php)