GBP vs THB

[lomuamart]

Yes, a bit of good news for a change and recognition that Thailand's exports are being hit hard.

[PET]

Yes, interesting news and the stated intention is to reduce rates again if Thailand's exports do not improve.

Furthermore the USA Fed announced yesterday that the intention to increase US rates will not occur any time soon so the US$ will weaken, I presume. The previous expectation had put downward pressure on Sterling and hence the weakening against the Bhat this year.

Both the above should strengthen the pound against the Baht, BUT, what will the effect be of the results of the "hung" parliament in UK next week and/or the Greek problem ( they are bankrupt however one looks at it) - so predictions are not easy so be careful.

[buksida]

This will have had an affect on the Baht: http://www.bangkokpost.com/business/fin ... r-rate-cut

[HHTel]

But there hasn't been a direct affect on the baht against the GBP. If anyone bothered to look the 'soft' dollar allowed the pound to improve against the dollar from a low of 1.46 to 1.55 (since fell to 1.53). The Thai baht is linked to the USD and being propped up by the BOT. This has nothing to do with the baht against the GBP and the only reason the exchange rate looks good is the strengthening of the pound to the dollar (temporarily I think)

[caller]

HHTel makes an interesting point as the initial interest rate reduction had no effect on the Baht whatsoever and was it on here that I read that only two banks followed the BOT at that time? On saying that, there is just simply so much bad news coming out of Thailand at the moment - fishing, flights, consumer debt and lower spending, exports hit, tourism down, dictatorship - it's hard to imagine that won't at least dent confidence in the baht at some stage.

[musungu]

Sometime last year when the GBP/ US$ rate went as high as about 1.72 it was also at that time that the GBP/THB went to nearly 54.0 since that time we have had the GBP/US$ rate go down to about 1.44 and at the same time the GBP/THB rate went down to about 47.0 . These figures can be easily checked and more recently when the GBP/US$ went back up to !.54 the GBP/THB rate went from 47 to 50 in this same period.

Therefore there has to be a correlation between the two

[Homer]

Therefore there has to be a correlation between the two

Search GBPTHB at finance.google.com. Next select GBPUSD checkbox. Finally, drag the slider to select a time period.

For example: https://www.google.com/finance?chdnp=1& ... wQOV6oDACw

[PeteC]

"LONDON (Reuters) - World bond and stock markets rose on Friday after a bruising week and sterling jumped to a two-month high after the business-friendly Conservative party won Britain's national elections.

Sterling was up 1.4 percent against the dollar....."

Has anyone seen a knock on to the Baht yet? Perhaps too early and Monday will be a better indicator. Pete

http://news.yahoo.com/asian-shares-firm ... iness.html

[PET]

Sterling has sharply improved against other currencies in the last week, mainly due to the announcement that wage rises now exceed inflation, which also means the B of E could well increase interest rates earlier than previously thought.

[Tyrell]

Is there any restriction on the amount of THB that can be brought into the country in cash?

[Dannie Boy]

Is there any restriction on the amount of THB that can be brought into the country in cash?

I've read conflicting stories on this, one saying there is no limit and another saying 50,000 baht, however there may be a limit on what you can take out of your home country (without declaring it). But, why would you want to bring THB into Thailand, unless you already have some from before when the exchange rate was higher - you will always get a better exchange rate in Thailand than you will if you exchange in your home country.

[Tyrell]

Thanks for the reply. I think you're right about changing money in Thailand. Last time I was in the Village Market I got a better rate than the best on offer on UK websites. When I first went to Thailand it was 75 baht to the pound, those were the days!!!!!

[Bristolian]

The THB is currently at 52.48 to the Pound

http://www.bangkokpost.com/business/fin ... 6-year-low

Baht sinks to 6-year low

The baht plunged to its weakest level since September 2009 amid sustained outflows from local assets and a selloff in Chinese equities.

Global funds have withdrawn a net US$199 million from stocks and bonds this month, taking total outflows for 2015 to $1.2 billion, data compiled by Bloomberg show.

The benchmark SET Index of local shares fell 0.5% on Wednesday after dropping to an almost seven-month low Monday as investors grapple with potential risks stemming from Greece's likely exit from the euro and a stock rout in China.

The baht declined for a third day, retreating 0.2% to 34.007 a dollar as of 11:49am in Bangkok, according to data compiled by Bloomberg. The currency, which has lost 4.3% in the past three months in Asia's second-worst performance, sank as low as 34.055 earlier. A gauge of dollar strength rose for a fourth day.

"Foreign outflows signal a weaker outlook for the baht," said Thanomsri Fongarunrung, an economist at Phatra Securities in Bangkok. "The ongoing anxiety in China's stock market and its economy has further weakened sentiment for the baht and other currencies in the region."

China, Asia's largest economy, is the second-biggest export market for Thailand after the US, accounting for about 11% of total overseas shipments in the January-May period, according to a commerce ministry statement dated June 26.

[PeteC]

It's 34.23 at 1400 hours.

[London Boy]

34.23 is for the $ not the GBP