Fly to thai

BANGKOK: — The Bank of Thailand on Monday intervened in the foreign exchange market to halt a rapid slide of the baht currency, officials said.

Suchada Gillakul, assistant to the central bank’s governor, said the intervention was deemed necessary after the baht dropped to 33.41 to the dollar Monday morning, its lowest rate in five months. It had closed Friday at 32.96.

“We will investigate whether foreign investors are speculating on the baht,” she told reporters.

After the intervention, the baht traded at 33.22 to the dollar Monday afternoon.

Like most Asian currencies, the Thai baht has steadily appreciated against the dollar, gaining almost 20 per cent over the past two years before starting to weaken last month in the wake of rising inflation, growing political instability, declines on the stock market and slowing growth projections.

By midday Monday, the Stock Exchange of Thailand index had fallen 1.3 per cent largely in response to a dramatic fall on Wall Street Friday.

– dpa 2008-06-09

Related link:
Thai Baht Currency Exchange Rates

BANGKOK: — The Bank of Thailand eventually decides to scrap the 30 per cent capital reserve requirement, effective on Monday.

The measure has been in place since December 18, 2006.

Ahead of the press conference at 4pm, Amara Sriphayak, senior director of the bank’s domestic economy department, on Friday said that many factors support the removal.

“There are many factors supporting the removal of the capital controls but we need to wait and see how to remove them and when,” she said.

– The Nation 2008-02-29

From this morning:
Baht hits new high as market readies for capital controls end

BANGKOK, Feb 29 (TNA) – The Thai baht hit a new high again in Thursday’s trading session because there is an expectation in the market that the central bank will scrap the 30 per cent reserve requirement, according to Bank of Thailand Governor Tarisa Watanagase.

She said the baht strengthened and broke through 31.99 to the US dollar compared with a range of 32.085-32.105 to the dollar on Wednesday, it’s strongest level in 10 and a half years.

Mrs. Tarisa attributed the continued baht rise to the market expectation that BoT would call off the reserve withholding measure.

However, she said, the local currency had strengthened in conjunction with other regional markets.

The previous government imposed currency controls in December 2006 in an attempt to halt the baht’s rapid rise against the dollar. The measure caused the biggest single-day drop in the Thai stock market in late 2006, with losses worth 203 billion dollars. Relaxations have since been made to the currency rules.

Mrs. Tarisa said should anyone want to know whether the central bank had intervened in the baht movement for now, they could see data on the country’s international reserve through the website of the bank.

She reiterated the bank’s supervision and management policies would remain unchanged.

Regarding a comment by the Securities and Exchange Commission (SEC) that the BoT is indecisive and uncertain in the scrapping of the capital controls, she said it is a difference of perspectives.

However, she reasserted that what the central bank would do must benefit all parties.

– TNA 2008-02-29

Related link:
Thai Baht Exchange Rates:
http://baht.thaivisa.com

taken from http://www.thaivisa.com

Thai baht hit the highest record in ten years as it opened Thursday morning at Bt33.01 to Bt33.02.

Currency traders attributed the rise to the US Federal Reserve’s decision to cut the interest rate by another 50 basic points last night to 3 per cent, prompting certain speculators to buy Thai baht.

As a result, Thai policy rate is 25 basis point higher than the US rate.

Currency traders expected that if the US Federal Reserve further cut the interest rate again in March. The difference between Thai and the US rates will be higher. This may prompt much higher inflow of capital into Thai market. This could lead to further rise of Thai baht.

Source: The Nation - 31 January 2008

taken from http://www.thaivisa.com

BANGKOK: — The baht currency appreciated to 33.13 to the US dollar on Monday, its strongest showing in 10 years against a continuously weakening greenback.

Currency dealers at Bank of Ayudhya predicted that the baht would further strengthen to 33 to the dollar soon. The US dollar is weaker because of concerns about a US economic slowdown.

The latest US trade figures showed that in November the country experienced a trade deficit of US$6.3 billion, the highest in 14 months, since imports, particularly of fuel, had increased.

At the same time, the country’s exports edged up by 0.4 per cent, hitting a record one-month high boosted by the weaker US dollar.

Meanwhile, the Stock Exchange of Thailand’s composite index continued to drop in the morning trading session in the same direction with other regional markets.

It opened lower and fell below a support level of 790 points, but recouped its loss and closed at 791.30, down 5.17 or 0.65 per cent, with a thin trading volume of 4.95 billion baht.

Related link:
Baht offshore rates
http://baht.thaivisa.com

taken from http://www.thaivisa.com