Current exchange rates $ ┬г E

[wowpow]

http://img.photobucket.com/albums/v27/wowpow/DollarA37.png
US Dollar 37.8

http://img.photobucket.com/albums/v27/wowpow/PoundA72.png
UK┬г 71.2

http://img.photobucket.com/albums/v27/wowpow/EuroA48.png
Euro 48.7

Courtesy Yahoo Finance
http://finance.yahoo.com/currency/conve ... it=Convert (http://finance.yahoo.com/currency/convert?amt=1&from=USD&to=THB&submit=Convert)

The blip up in the dollar vs baht in the May-June period reflected the feds raising short-term interest rates. It seems that the fed is signaling that the economy is slowing sufficiently (read we're nearing the end of the rate increase cycle). Although you could see one more quarter-point rise next week. What's this mean for the exchange rate? Generally, when rate stops going up that currency tends to decline or hold steady. But there's also the matter of supply and demand. I won't attempt to answer that question here but it has a lot to do with how much currency of the major economic powers do the nations of the world choose to retain. Finally, there's a cyclical trend to exchange rates in Thailand that seems to occur year in and year out. I personally believe that the baht/dollar rate will flex between 36.80 to 38.30 between now and April. Bottom line: given higher hotel rates and travel costs and a lower dollar, farangs (especially those from US) should expect to spend 7-10 percent more on their vacations this year.

What could change that outlook? A major flu outbreak in SE Asia, insurgent attacks outside of the southern provinces, etc.

is 72.11 as of today - watch it, the US is having economic problems, and sterling is being heavily invested into, US interest decision tomorrow, which will more than likely stay as it is, as opposed to higher interest rates in UK and Europe - possible outcome is that China could dump some of US currency and bonds into sterling (talk of it), and therefore an increase in sterling and possibly Euro and a lower dollar. We could be seeing a 2 dollar to the UK pound.

But then China might revalue - who knows!!!!