Baht could rise to 33 per US dollar

Published: 6/07/2009 at 10:23 PM
Online news: Breakingnews

The Thai baht, which has appreciated about 2.3 per cent against the US dollar during the first half of 2009, may strengthen further to 33 to the dollar late this year, according to a report issued by Kasikorn Research Centre.

The report said the baht - which ranked second in terms of Asian currencies strengthening most among Asian currencies during the first half of 2009, after the Indonesian rupiah, is expected to appreciate further during the second half on the back of economy recovery in China and other Asian countries, including Thailand.

Because of the expected economic recovery in Asia, inflation may also take place in the region later this year, which could force central banks, especially China’s, to step up stringent monetary measures aimed at controlling inflation in their countries, it said.

It is likely that the baht would move in conjunction with other Asian currencies and could test at Bt33.75 against the dollar and could even strengthen further to 33 baht by late 2009 if supportive factors continued, the report indicated.

However, in the worst-case scenario, current positive economic indicators seen in a number of other countries may not be strong enough to push world economic recovery significantly.

This may make Asian economies, including that of Thailand, to be in a difficult position to recover and the Thai baht may soften to below 34 baht against the greenback, the report said.

The baht by late last Friday was at 34.06 against the dollar, compared to 34.07 baht per dollar the previous day.

Banks in Thailand closed last Saturday and will not reopen until Wednesday as the country marks two important Buddhist religious. (TNA)

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Pointman #2

Discussion 2 : 07/07/2009 at 02:52 PM2
I would agree with this story simply because the United States isn't highly invested/involved in Thailand, so therefore, there's no big demand for the U.S. Dollar in Thailand. If you look at the Republic of Korea, you will see the Korea Won is trading at a level that helps the Korean economy and also helps the United States. This is why in my opinion, south Korea, will be the first Asian country to recover from the economic crisis and could eventually out-perform Japan and China. I do know, Korean made products are superior to products made in China, and equal in quality to Japanese made products.
Robert

Discussion 1 : 07/07/2009 at 10:48 AM1
The American Government is printing money as fast as
the presses will run, and the dollar has no backing other than the "good faith and credit" of an obviously fading nation. The problem here is not with the Baht, the problem is with the dollar and with the United States.

Pointman #2

Discussion 2 : 07/07/2009 at 02:52 PM2

I would agree with this story simply because the United States isn't highly invested/involved in Thailand, so therefore, there's no big demand for the U.S. Dollar in Thailand. If you look at the Republic of Korea, you will see the Korea Won is trading at a level that helps the Korean economy and also helps the United States. This is why in my opinion, south Korea, will be the first Asian country to recover from the economic crisis and could eventually out-perform Japan and China. I do know, Korean made products are superior to products made in China, and equal in quality to Japanese made products.

Robert

Discussion 1 : 07/07/2009 at 10:48 AM1

The American Government is printing money as fast as
the presses will run, and the dollar has no backing other than the "good faith and credit" of an obviously fading nation. The problem here is not with the Baht, the problem is with the dollar and with the United States.

Baht could rise to 33 per US dollar