Expect lower baht against most currencies

[psd1315]

ThailandтАЩs central bank may cut its benchmark interest rate.

The baht fell 0.4 percent to 30.13 per dollar in Bangkok. It has retreated more than 5 percent from a level of 28.56 per dollar in April, the strongest since the 1997 Asian financial crisis, and is AsiaтАЩs best-performing currency this year after the Chinese yuan.

I'm not buying the baht yet. :glasses7:

[Krazy4thai]

One can only hope the int rate changes are in favour of the $ etc . As selfish as that hope is. With RBA continually cutting the Oz interest rates it has drastically altered the xge rate to the US$ and following from that we have subsequently seen the Baht xge rate dropping as well. In July 2011 It was about 33B/$AU1 dropping back to 31/32 by December, still a good rate. ATM it is about 28.45,, whereas against the $US we have dropped around 5/6c over that last few months.
Still I guess with my budgetary daily allowance as long as I'm getting at least 27/B I'll be satisfied in all ways :happy7:

I have found the best way to get an accurate view of exactly what you would get on any given day is by going to the BKK Bank &/or Kasikorn Bank xge rate pages. Today for example Yahoo currency converter is showing 28.96 per $AU, whereas BKK Bank are actually paying 28.45. Admittedly only about 50c on an off fee, but when changing the larger amounts that I do daily it can make make a 500 - 600B difference, not much maybe but not to be sniffed at.

[Beachlover]

Yeah... the Aussie dollar has dropped slightly. Don't think it'll affect my spending habits unless it passes 25baht/$1AUD and gets close to 20 baht.

I remember it went down to around 22 baht/$1AUD a few years ago during the time I made a few visits to Thailand as that was quite noticeable!

[Nirish guy]

ThailandтАЩs central bank may cut its benchmark interest rate. I'm not buying the baht yet. :glasses7:

Just for clarity for those of us who don't follow ( or perhaps like myself understand! ) such things and as I'm about to go out and buy a load of baht perhaps, do you mean that you believe the Thai Central bank may do this imminently or 'in general"over the coming weeks or months perhaps as needless to say if you're right I too will hold off on that for a while ...... TIA

[ceejay]

It's hard to say NIrish. The BOT may just be "talking down" the baht - sometimes, the threat of a rate reduction is enough to bring down a currency, without the actual need for the reduction itself. BOT does seem to be committed to a slghitly weaker baht, though and it may have farther to go.
Don't forget, though, that you are trading out of the GB pound. To benefit from any fall in the baht, the pound has to remain at, or better than, it's current strength relative to a basket of major currencies. That is by no means a given and it is quite possible that the pound will fall by more than the baht, giving you a net loss for waiting.
What I personally do is make a budget for the baht I need at a target rate and then buy if that rate becomes available (if it doesn't I have to re-budget or change my plans). It's about securing my budget, rather than making gains or losses.

[Up2U]

The BOT lowered the bench mark interest rate 25 basis points on the 29th (yesterday), many were hoping for a 50 basis point reduction. The reduction has probably been priced into the market.

[Krazy4thai]

Yeah... the Aussie dollar has dropped slightly. Don't think it'll affect my spending habits unless it passes 25baht/$1AUD and gets close to 20 baht.

I remember it went down to around 22 baht/$1AUD a few years ago during the time I made a few visits to Thailand as that was quite noticeable!

It seems the $AU is clawing it's way back a little. I realized the other day I was looking at the wrong column on the BKK Baank xge rate site, If you use an ATM you look at the TT rate not the regular buy/sell rate. As at 2pm Thai time the rate is 29.2.

I leave Oz for LOS in just over 2 weeks, so I'm hoping it stays around where it is now. Was thinking when the slide down was happening, that 27 wont affect things much at all, could cope with that, 25 is cutting a bit close to the bone. :8(
At 29B/$ , $200/day makes for great fun to be had :evil4: Probably wont even need that much

[Krazy4thai]

ThailandтАЩs central bank may cut its benchmark interest rate. I'm not buying the baht yet. :glasses7:

Just for clarity for those of us who don't follow ( or perhaps like myself understand! ) such things and as I'm about to go out and buy a load of baht perhaps, do you mean that you believe the Thai Central bank may do this imminently or 'in general"over the coming weeks or months perhaps as needless to say if you're right I too will hold off on that for a while ...... TIA

I bought baht prior to my 2011 trip. It's not really worth it unless the rate is dropping rapidly and you can grab the baht at a substantially higher rate. When you from a bank or travellex etc the rate they sll at is always lower (by about 2 units of currency) than the rate you will probably get from an ATM

[Beachlover]

Hey Krazy... AUD has tanked against the USD but seems to be holding ok against the THB.