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US Dollar Climbing?


cavanami

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The latest from my "Money Guy"...YMMV

 

The dollar is up against world currencies for a thrid day. Baht opened today at 29.95 and last thursday is was 29.46. QEII and Chinese inflation are the drivers.

Commodities, gold, silver, oil are all down, along with regional and western markets. Bond market is flying. Should continue for a few more days at least.

 

Siam Exchange had the following rates this week:

 

Mon:29.90

Tue: 29.85

Wed: 29.95

 

Will it go to the 30's??? :dunno:

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Specific to the USD/THB rate the capital inflows have slowed due to rumors of more capital controls and taxes which has eased demand a bit. The SET has dropped back below 1,000 today.

 

Wouldn't get to excited, I don't think it will ever go back up much. Probably stay around 30 now for a while.

TH

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Specific to the USD/THB rate the capital inflows have slowed due to rumors of more capital controls and taxes which has eased demand a bit. The SET has dropped back below 1,000 today.

 

Wouldn't get to excited, I don't think it will ever go back up much. Probably stay around 30 now for a while.

TH

 

 

I would agree don't expect a long up trend in USD.

But the USD strength now seems to be from selloff

of the Euro due to sovereign credit problems in

Ireland. Some traders think this may go now for

a month. But maybe China will buy up some Irish

bonds that is what happened in Greece.

 

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If someone kicks a bucket, the bht will plummet. Likely a ton in only one day.

 

 

While I don’t disagree that the death you speak may have a temporary effect on the baht, it may not happen just from a purely practical point of view. To begin with, when it is announced, the SET and all the banks will immediately close for probably a 3 day (at least holiday). This alone will make it very difficult for any “capital flightâ€Â, which would cause the fall of the baht, to actually happen as the markets will be closed.

 

Before the financial institutions re-open, the succession will be announced and the reaction to that can be gauged. If it is handled correctly, the negative impact could actually be minimal.

 

TH

 

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  • 2 weeks later...

From my "Money Guy":

 

If you are thinking about moving money this week, consider bring dollars into Thailand very soon. The baht is at 30.22 now and we expect a jump back into the high 29s by late this week or early next week. Foreign funds are deserting the euro and the pound. The aussie is weak right now, as that foreign money is headed for Asia.

The yen is weaker today, so that money has already started to move. Hedge Funds are re-entering Asian markets through Hong Kong.

 

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AS I recall your "money guy" is seldom 100% spot on...the bht is 30.22 now? so invest as it will drop to 29+? WTF...wouldn't I want to buy in at 29 and have it go to 30+++++???

 

My money guy says "...my head is up my ass, it is anyone's call, and depending how it goes, anyone's call after that...it will go up or down, the US economy will be further fucked in 2011, due to mortgage foreclosures etc...or maybe not...

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