Baht hits record high against dollar | Bangkok Post: business

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Stocks fall as baht hits record high

Central bank governor eases market concerns

Published: 20 Mar 2013 at 00.00
Newspaper section: Business

Thai stocks fell by 1.47% Tuesday on mounting worries that the central bank may impose curbs to slow the baht's rapid appreciation after the currency rose to its highest level against the US dollar since being floated in July 1997.

The benchmark SET index rose in the morning session, breaking through the psychological 1,600-point level, but dived in the afternoon to the day's low of 1,554.27.

After Bank of Thailand governor Prasarn Trairatvorakul eased concerns by saying an emergency meeting of the Monetary Policy Committee is unnecessary, the market pared losses and closed at 1,568.25 points with a brisk volume of 76.1 billion baht.

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sirron
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Discussion 8 : 20 Mar 2013 at 15.558
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"The EU's decision over the weekend _ to fund a partial bailout of Cyprus by taxing bank deposits _ raised fears of future bailouts in the bloc, possibly shaking the entire financial system."

Taxing bank deposits means in English "stealing my already taxed money that I was saving for retirement, vacation holiday, new car, house, Etc". I've seen news reports that many ATMs ran out of notes as people tried for the last few days to start getting their money out of the bank before the tax got automated. Thai banks already tax some foreign bank account money coming to Thailand by charging 150 baht per withdrawl from an ATM.
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sibley
Post : 167
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Discussion 7 : 20 Mar 2013 at 10.177
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It will all end in tears, I know many Thai people who are up to their ears in dept, and still they borrow more.
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facts_only
Post : 564
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Discussion 6 : 20 Mar 2013 at 09.316
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This article is very relevant to the situation:
http://www.bangkokpost.com/news/politics/336731/mpc-in-the-hot-seat-over-rate-decision
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paulren
Post : 14
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Discussion 5 : 20 Mar 2013 at 08.505
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Small cap's have been undervalued on the local stock exchange for years! This so mostly because brokers' lack of coverage on these. Thai retail investors have finally woken-up and discovered where many investor values are. Yes, some small cap's have soared up on speculation, but most are still reasonable valued, have higher growth and superior dividend yields compared to large cap's. It is not true to keep suggesting there is a broad bubble in small cap's, when its just confined to a few. Just because institutional investors missed out lately due to their huge appetite for liquidity, is not a cause to claim a bubble in small caps.
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drsmith
Post : 1,591
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Discussion 4 : 20 Mar 2013 at 08.324
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The country is wallowing in hundred's of billions of lost baht due to corruption and rice schemes, flood damage, massive borrowing etc. so how in the world has the baht been getting stronger? This defies economics in general. Imports have led exports by billions. Rice is being stockpiled and sold for a loss. There has been no positive financial developments in Thailand since Yingluck took office indicative of the baht getting stronger. This is pure government manipulation.
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jaidee
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Discussion 3 : 20 Mar 2013 at 08.143
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What? More baht manipulation? How can that be? Thai bank long on Euro, shorting dollar hoping to compensate for losses? Loss in the gold market by BOT at $200/oz and falling? When the baht reaches 25/$1 how will exports fair in a competitive global marketplace?

False value does not make for a healthy economy, it means the baht is in trouble as is the economy.
superficial values from superficial economic management.
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faranginkorat
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Discussion 2 : 20 Mar 2013 at 07.162
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The US$ is also stronger than normal at the moment as reflected by various exchange rate composite indices.
If the dollar returns to more normal levels, the THB/US$ rate will drop further.
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3rivers
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Discussion 1 : 20 Mar 2013 at 06.181
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It's Small Caps that are overvalued? I know a big cap still above 50 times earnings that has barely begun to come back to Earth, but a small cap auto parts material maker selling for only 3 times it's Q4 earnings comeback. And it's parent just bought a Thai carbon fiber composite business that is also automotive. Hmmmmm. But Small Cap Bubble sounds good. Don't want to panic the whole market, just the Speculative Sector.
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