News Forum - Thai baht plunges to 38 against US dollar for first time in 16 years

[Thaiger]

The volatile Thai baht has depreciated to 38 against the US dollar even faster than foreseen by economists. The last time the baht reached 38 to the dollar was 16 years and two months ago on July 26, 2006. The baht has hit the 38 mark even earlier than expected by the Head of Capital at Kasikorn Bank Kobsidthi Silpachai, who just a few days ago predicted that the baht would depreciate to 36.50 – 38 against the US dollar within the next month. The baht’s depreciation is attributed to the rising strength of the US dollar. The dollar index […]

The story Thai baht plunges to 38 against US dollar for first time in 16 years as seen on Thaiger News.

Read the full story

[Janneman]

Good news for those working in the forex business. Even better, the 'experts' in the Bank of Thailand will most likely try to intervene. They have to do something dont they? To save the country? Which means, the baht will rise for a few days and then drop again. If they would only announce exactly when they will intervene. Huge amounts of money can be made with that knowledge. 

[ExpatPattaya]

39 minutes ago, Janneman said:

Good news for those working in the forex business

To call forex trading a business is a bit of a stretch.  Businesses provide goods and services.  Forex is someone sittind and watching a computer screen and speculating on currency... you certainly are not manufacturing or building anything but your own wealth through some study and luck hopefully

[TheDirtyDurian]

Cable parity soon!

[EdwardV]

So much for it taking till the end of the year to happen. Anyone and their brother could see 38 was going to be reached in a few weeks. If the BOT intervenes it will be short lived just like in August and with probably the same results. Why waste the reserves trying to hold back the tide? If they wish hold the line, they need to raise interest rates. Of course that will hurt growth. Rock and a hard place. Tough choice. 
 

Question is how high can it go? 39, 40? More? 

[Cabra]

What goes up will come down (eventually). As long as the US Fed keeps pushing up rates under fears of a global recession capital will flow into US greenbacks. There is not much Thailand can do about it. Any attempt by BoT to intervene will be short lived and only puts their already dwindling reserves at risk. The dollar appreciation we see now is a bit of an abnormal spike (hitting 38 so quickly). We might see baht 39 soon, but by YE it's likely to settle back down at 38. My guess is 2023 is not likely going to be a  good year for the baht. 

[TheDirtyDurian]

Nearly the same as the Scottish £ already.

[Janneman]

7 hours ago, ExpatPattaya said:

To call forex trading a business is a bit of a stretch.  Businesses provide goods and services.  Forex is someone sittind and watching a computer screen and speculating on currency... you certainly are not manufacturing or building anything but your own wealth through some study and luck hopefully

Re-read my last sentence Expat. Now who would know on what date the BOT will start intervening? Only a handfull of trusted BOT employees. Better hope they do not tell any of their friends and split the multi million dollar profit that can be made with that knowledge.

[JanF]

When they say Thai Baht plunges to 38 against the US dollar for first time in 16 years, they forget to mention, that the Thai Baht has appreciated around 20-30% against European currencies in the same period. When I came here in 2006/07, I got 7 Thai Baht for 1 Danish krone, today I get less than 5, so Thailand will maybe only get more American Tourist regarding to the Thai Baht exchange rate.

 

[farangutan]

It's only a matter of time before the USD will die a slow painful death, it's parabolic rate cannot continue its headed for financial suicide