The UK ┬г

I have noticed the baht has started to weaken a little, i.e. the rate 64 to the ┬г. The commercial rate is 65 odd on XE which is even more, I suspect this will reflect (if it keeps up) in Monday's rates.

Anyone know the reason why, I know the dollar has strengthened recently.

[netrix]

Political tensions hurting Thai economy (http://www.washingtonpost.com/wp-dyn/content/article/2008/06/02/AR2008060200237.html) according to the Washington Post.

Vietnam is running a trade deficit, not covered by FDI or aid, a major govt budget deficit and has inflation of 25%+.

There is speculation that it will soon be forced into a devaluation.

This in turn would likely force Thailand to devalue to remain competitive as much of Thai exports compete with those from Vietnam.

Thailand's current inflation rate of 7.6% is also forecast to rise in the 3rd quarter. This is also not conducive to maintaining a strong currency

In 2 weeks it has gone up 3 Baht. The Economy though being in a recession is making the ┬г stronger, l always knew the Baht could not be sustained at 60 to the ┬г, lets hope it gets back to 70 where it should be.

pp

In 2 weeks it has gone up 3 Baht. The Economy though being in a recession is making the ┬г stronger, l always knew the Baht could not be sustained at 60 to the ┬г, lets hope it gets back to 70 where it should be.

pp

I don't think "it should be" anything, its how the markets settle at the end of the day. Saying it should be back to 70, you might as well say 90.

Having said all that, the world is having problems at the moment with inflation, so everyone is in the same situation, especially with oil at record highs.

Whilst the brits are still going to Thailand in droves at 60 bht to the ┬г, I bet the Europeans are going to Thailand in the zillions, the Euro is so strong and has even appreciated more in the past few days.

Oil closed at $ 139 a barrel today and they are talking of it going to $ 150 by the first of July