Mentors Posted March 17, 2010 Report Share Posted March 17, 2010 The Thai baht hit a 21-month high on Tuesday, reflecting confidence that political turmoil is unlikely to degenerate into violence or bleed into the broader economy. The baht hit Bt32.32 to the dollar in morning trade, up 3.2 per cent on the year, and continued a strong run in spite of opposition demonstrations that have drawn tens of thousands of red-shirted protesters on to the streets of Bangkok to demand the government’s resignation. It is now understood that the red shirts cannot overthrow the government, that the government has the solid support of the military,†said Supavud Saichua, managing director of Phatra Securities in Bangkok. The last time the opposition took to the streets, in April, troops had to resort to firing live rounds to quell rioters. There had been widespread fears of even worse violence during this latest round of demonstrations, but they have so far proved unfounded. The administration of Abhisit Vejjajiva, the prime minister, has emerged looking stronger and more in control of what remains a deeply divided country. Mr Supavud said: “Abhisit looked weak back in April, but now his government looks like it will last longer than many expected.†In the longer term, the seemingly unstoppable rise of the baht has been driven by the global recovery – exports grew 31 per cent year-on-year in January – but the effect has been amplified in recent months by capital inflows into the stock exchange. The Stock Exchange of Thailand index has risen 4.65 per cent over the past week. The Bank of Thailand gave an upbeat assessment on Tuesday. “Foreign investors are still confident as money is still flowing into the stock markets,†said Suchada Kirakul, an assistant governor at the bank. “If the situation is going like this with no violence, the market should be doing fine,†she said. Most Asian regional indices have risen as international investors try to cash in on the global recovery. “Emerging markets everywhere are going up and our market has lagged in the past,†said Mr Supavud. He added that investor interest in Thailand is returning as confidence in the country’s political stability strengthens. Finance ministry spokesman Eknitti Nitithanprapar said that the central bank was intervening in the markets, but only to smooth volatility, and said the government was not over-concerned about the appreciation. He said: “The baht is appreciating in line with other regional currencies, even though it has appreciated a bit more because of capital inflow.†So far this year, the South Korean won has risen 2.7 per cent against the dollar, the Indonesian rupiah has gained 2.8 per cent and the Malaysian ringgit has climbed 3.1 per cent. Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web. http://www.ft.com/cms/s/0/3fb8c652-3119-11df-8e6f-00144feabdc0.html Link to comment Share on other sites More sharing options...
cavanami Posted March 17, 2010 Report Share Posted March 17, 2010 Red shirts in the street, unemployment, tourism down...WTF Link to comment Share on other sites More sharing options...
sanddawg1 Posted March 17, 2010 Report Share Posted March 17, 2010 No shit it's gained 2/3 of a baht since I was there just a month ago!! The REDS need to stir somemore trouble!! Link to comment Share on other sites More sharing options...
Guest lazyphil Posted March 17, 2010 Report Share Posted March 17, 2010 if it gets any stronger i'll be sleeping in a shoe box in klong toey on holiday Link to comment Share on other sites More sharing options...
cavanami Posted March 17, 2010 Report Share Posted March 17, 2010 Dumpster dining? sleeping on the park bench? boom-booming the ladies a thought of the past Link to comment Share on other sites More sharing options...
Nervous God Posted March 17, 2010 Report Share Posted March 17, 2010 annoying - lost 5000 baht on a transfer today Link to comment Share on other sites More sharing options...
cavanami Posted March 17, 2010 Report Share Posted March 17, 2010 Ouch! Transfer in smaller amounts and try to ride the wave (catch the Baht when it is weak) Link to comment Share on other sites More sharing options...
Nervous God Posted March 17, 2010 Report Share Posted March 17, 2010 No choice - a regular transfer Link to comment Share on other sites More sharing options...
cavanami Posted March 18, 2010 Report Share Posted March 18, 2010 Bangkok Bank showing: 31.97 vs the USD this morning! Link to comment Share on other sites More sharing options...
Torneyboy Posted March 18, 2010 Report Share Posted March 18, 2010 It is great for us Aussie travelers .... THB rate shown below is the international rate. Rates used within Thailand may vary. 10,000.00 AUD = 298,330.14 THB Australia Dollars Thailand Baht 1 AUD = 29.8330 THB 1 THB = 0.0335199 AUD Link to comment Share on other sites More sharing options...
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