Baht set for biggest weekly loss

Published: 25 Jan 2013 at 09.19
Online news: News

Thailand's baht was headed for its biggest weekly loss since June amid concern its appreciation to a 17-month high versus the United States dollar and a four-year high against the yen will hurt exports. Government bonds held steady.

The currency snapped a run of seven weekly rallies after Thailand reported overseas sales data on Jan 23 that missed economist estimates. Finance Minister Kittiratt Na-Ranong said yesterday he would like to see the baht "a little bit" weaker as appreciation was putting pressure on exporters. The currency reached the strongest level since Aug 2011 versus the dollar on Jan 21 and hit the highest level since Oct 2008 versus the yen on Friday.

"The authorities are getting more uncomfortable with sharp appreciation against the dollar and the yen," said Wee-Khoon Chong, a strategist at Societe Generale SA in Hong Kong.

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frogmarch
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Discussion 4 : 26 Jan 2013 at 19.314
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Last week I said that Baht got all times high due to Republicans Frugality that knocked-down the dollar. The baht due to crash to June because Republican Frugals extended Debt Ceiling till May. That means they will be Yen, Yuan, Sterling, Euro & Petrodollar Dump to get TBs is imminent.
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faranginkorat
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Discussion 3 : 25 Jan 2013 at 13.233
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Those who think this is a mini-bubble created by the inflow of some "hot money" might be right.
On the other hand, the last I knew, the developed world had only 1% of it's investment capital in emerging markets. Most of the world's investment capital is in the USA and EU. I don't want any of my money invested in either place or currency right now, and I am probably not alone. If the percentage into emerging markets goes to 2%, that is a 100% increase........Get my point?
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sibley
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Discussion 2 : 25 Jan 2013 at 12.192
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As my previous post, it will all end in tears
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davidh
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Discussion 1 : 25 Jan 2013 at 10.561
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The question is, in order to prop up dwindling exports, has the Bank of Thailand been actively supporting the U.S Dollar?
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Baht set for biggest weekly loss | Bangkok Post: business