Jump to content

The Baht remains strong while Asian stock markets slide


Recommended Posts

The Baht remains strong while Asian stock markets slide

By The Nation

 

800_8186cf641729aa3.jpeg?v=1566793860

 

The baht continues to be strong while the escalating trade war and violent protests in Hong Kong cause Asian stock markets to slide.

 

The Hang Seng Index shed more than 3 per cent at some point this morning (August 26) as investors worried about a new round of trade tensions between the. United States and China. Violent protest in Hong Kong also contributed to the market dropping sharply.

 

The Stock Exchange of Thailand Index lost 1.69 per cent in open trading this morning.

 

Japan ‘s Nikkei 225 was down more than 2 per cent in morning trading, South Korea’s Kospi dropped over 1 per cent, China’s Shanghai Composite lost over 1per cent. Singapore’s Straits Times Index and Malaysian Kuala Lumpur Composite Index also dropped more than 1 per cent.

 

Markets in Asia followed Wall Street’s large drop on Friday after China and the US raised tariffs on each other products.

 

The baht remained strong this morning moving around Bt30.60 against the dollar, appreciating from Bt30.70 on Friday, according to Kasikorn Research Centre.

 

Kobsidthi Silpachai, head of capital markets research at Kasikornbank noted the gold price had recovered following tweets by US President Donald Trump, ratcheting up tariffs.

 

Higher gold prices should mean Thai gold players will take profit on gold by selling gold against the US dollar and then selling the dollar against the baht, he added. The Gold Traders Association in Bangkok quoted gold prices this morning as buying at Bt22,200 per gold bar and selling at Bt22,300.

 

Source: https://www.nationthailand.com/business/30375352

 

nation.jpg

-- © Copyright The Nation Thailand 2019-08-26
Link to comment
Share on other sites

3 hours ago, Isaan sailor said:

Thailand should pay attention to what's happening in Hong Kong now.  Same thing will happen here if they continue down with the ChiCom Belt & Road Initiative.  And a rising Baht is all part of the evil plan...

But Thailand  can't just lower the value of the Baht. Just look at their foreign reserve which relates to the value of the Baht.  Fantastic.

 

Link to comment
Share on other sites

4 hours ago, Isaan sailor said:

Thailand should pay attention to what's happening in Hong Kong now.  Same thing will happen here if they continue down with the ChiCom Belt & Road Initiative.  And a rising Baht is all part of the evil plan...

Those in HK have a level of education and intelligence orders of magnitude greater than in Thailand so understand what is on the horizon. Here not so much...

Link to comment
Share on other sites

1 hour ago, Percy P said:

But Thailand  can't just lower the value of the Baht. Just look at their foreign reserve which relates to the value of the Baht.  Fantastic.

 

Lol of course the Thais could lower the baht , foreign reserves are just a part of the puzzle. China has by far the largest foreign reserves in the world but weakens its currency when it finds it useful to do so.

The likes of Russia , Japan and Brazil also have reserves far greater than Thailand yet have seen their respective currencies bomb from time to time.

The baht is strong because ( and only they know why ) it suits the political masters .As an export ( and lesser degree tourist) dependent nation it certainly doesn't make any economic sense.

Link to comment
Share on other sites

12 hours ago, SteveK said:

Of course the baht is still strong, the elite haven't finished buying their international investments and property yet. When they have, watch the baht drop like a stone.

hundreds of comments like yours during the last decade did not materialise. keep on dreaming.

Link to comment
Share on other sites

18 hours ago, Isaan sailor said:

Thailand should pay attention to what's happening in Hong Kong now.  Same thing will happen here if they continue down with the ChiCom Belt & Road Initiative.  And a rising Baht is all part of the evil plan...

Impossible! Can you imagine in your wildest dreams modern day university students and middle class matrons marching in support of "democracy" 555555555

Link to comment
Share on other sites

14 hours ago, Percy P said:

But Thailand  can't just lower the value of the Baht. Just look at their foreign reserve which relates to the value of the Baht.  Fantastic.

 

You just don't get it, Percy.  Thailand's high foreign reserve has come from years of hot money inflows of short term bond sales.  Duh.

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...