Thai Baht Weakens Above 35 to USD

[Undaunted]

The Thai Baht opened this morning at 35.13 baht per US dollar, down from the previous day's closing rate of 35.06 baht per US dollar. T
This represents the sharpest weakening in more than three months, according to Krung Thai Bank's Money Market Division analyst Poon Panichpibul.

Factors supporting the depreciation stem from the strengthening of the USD, which comes with a contraction in the price of gold, putting pressure on the Thai Baht due to the reduced demand for gold purchases. Additionally, selling pressure on Thai assets from foreign investors can also contribute to the depreciation of the Thai Baht, Poon said, as some exporters may wait for the Thai Baht to weaken below the 35 baht per USD threshold. However, it is believed that the Thai Baht may change its volatility zone, Poon added.

Quote: The Nation

[Jun]

THB 44.8 per GBP as well.

Both the US and UK have been raising interest rates, although the Bank of England have been dragging their feet more than the Fed.

[Montree]

I'm getting the best rate against the Pound since Brexit.

[Gaybutton]

I'd love to see the baht weaken much further than that - and not strengthen again, at least for a very long time. If anything, just stay status quo or continue weakening. Am I dreaming?

The best rate I've seen in a hell of a long time occurred last November when the exchange rate slightly exceeded 38 baht to the US dollar. But that was very short lived, lasting only a few days. I hope the exchange rates are headed that direction again. I think it's high time for the wheel to turn - and stay that way at least as long as we've had to endure these miserable exchange rates.

[Jun]

I think it's high time for the wheel to turn - and stay that way at least as long as we've had to endure these miserable exchange rates.

For most of the last 20 years, Thailand has run a balance of trade surplus averaging something like 5% of GDP, which suggests the exchange rate has been competitive. This has dropped to a very small deficit after all the disruption caused by daft covid policy.

Meanwhile, the US and UK have both run horrific trade deficits. So we're lucky to have what currency strength we have enjoyed.

[Undaunted]

[Alex]

Long may it last, and I unashamedly say so for purely selfish reasons.