Money again - fresh lows of sterling to bht

Today saw fresh highs of the bht, around 62.23 to the UK pound with Bangkok Bank. Its never been that rate for years. Although the dollar is holding well against the bht as is the Euro. Strange eh. I haven't seen anything bad that is happening in the UK that would affect the exchange rate. The difference offshore and onshore is about 1.5 bht only now. The more and more I think about it, I'm sure "someat is going on" to discourage us English from visiting Thailand. Let's face it, the Americans have stopped going in droves.

Good Post. Something l have been wondering why, about as well. I do wonder if any of this relates to Northern Rock, as the cost is going to Nationalization be astronomical.

Why not pay with Euro in the future? Euro very good and very hard :compress:

the Euro has been high also, so it makes no difference. The euro to the pound was around 1.38 even 1.40 a year ago, today it is 1.32 to the pound. It would be pointless anyway, one would have to change pound to Euro then into Bht.

[Brad the Impala]

Isn't it as simple as Sterling falling against other currencies, as the expectation and reality of falling UK interest rates persuades investors that they can earn better rates of interest elsewhere, and therefore sell pounds.

Whereas the expectation in Thailand is that currency restrictions will be removed, encouraging an influx of investment money that will push the baht higher.

Brad the Impala has it completely right.
The fall in Sterling has been entirely predictable, as was the fall in the Dollar.

The UK running a balance of trade deficit that's even worse as a percentage of GDP than the US doesn't help confidence either.

Living beyond our means as indebted western nations will erode our wealth advantage, to the point where we can no longer have a night out with a RB for less than an hours salary back home.

Brad the Impala has it completely right.
The fall in Sterling has been entirely predictable, as was the fall in the Dollar.

The UK running a balance of trade deficit that's even worse as a percentage of GDP than the US doesn't help confidence either.

Living beyond our means as indebted western nations will erode our wealth advantage, to the point where we can no longer have a night out with a RB for less than an hours salary back home.

I can see how the dollar was predictable, but I can't see how the UK pound was predictable. The UK's balance of trade deficit has been a problem for as long as I can remember, along with UK people being up to the hilt in debt. The credit crunch hasn't helped and whilst there may be still some fallout from that, UK banks are now in a better position than ever to tackle the credit crunch, i.e. they have improved their liquidity etc etc, so it is now even more unlikely that the credit crunch will affect UK banks, and besides UK banks do not totally rely on the money markets to borrow their money, as does the US which is why the credit crunch is such a problem there. With regard to interest rates, whilst they are coming down but only recently a 1/4%, that's hardly the reason why there should be problems with sterling, the BoE have indicated that there is not much room for aggressive cuts due to higher inflation that may kick-in.

Really, at the end of the day, the UK is in a fairly good position with regard to economics (yes even allowing for Northern Rock) and I cannot understand why the Bht to ┬г has dropped 10% or more since its high of around 70 to the ┬г? Food for thought!

The govt nationalising a major mortgage lender/bank has only increased the pound's decline and highlighted international concern at the health of the UK's financial sector - since the emergency bail-out of the failing bank was announced the pound has decreased in 10% in value against the euro. The IMF said last Oct that sterling was overvalued. International banking groups like HSBC predicted in Dec that 2008 would see sterling take a battering. The stagnation and in some cases drop in the housing market also has a negative effect on the strength of the UK economy, and hence sterling.

In terms of the Baht - in Nov last year you would get 6900 Baht for ┬г100 (approx US$200) - now I guess it is around 6200 Baht = so for every ┬г100 you are only losing 700 Baht - not good, but it is manageable - just one less short time tip every time u change ┬г100 :crybaby:

Things are definitely looking better for the eurozone economy.

In terms of the Baht - in Nov last year you would get 6900 Baht for ┬г100 (approx US$200) - now I guess it is around 6200 Baht = so for every ┬г100 you are only losing 700 Baht - not good, but it is manageable - just one less short time tip every time u change ┬г100 :crybaby: Remember YardenUK that the highlight of every retiree's day in Pattaya is running around the money changers trying to see which of them offers the best exchange rate, down to the last satang. They are not cry babies (in their own minds)

Money Changers:
I have found that the best money changer (often 15-20 satang per ┬г more, is on 2nd Road, the shop sells, paintings and the such, it's in South pattaya, next to soi 17, l think next to a chemist.

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Very few of the readers are long on the dong.

on the contrary, u cant beat a few good dong

Today the bht to the ┬г was 63.54 offshore rate, which is on parallel to the onshore rate.