The Thai baht has been volatile for at least the last month, with its value against the dollar fluctuating quite wildly. It ended up down by four percent by the end of May, 2012. June, so far, hasn’t been much better for the Thai baht with its value still fluctuating while slowly continuing to fall. Great news for those who bring money into Thailand from the US or Europe. Not such good news for Thais who buy imported goods, or who plan on spending money overseas.
Singchai Bunyayothin, senior director of the money market division at the Bank of Thailand, said today the baht could further weaken in June.
Some analysts think the Thai baht being so unstable is because of news coming out of Europe, as the economic crisis there continues to deepen. That is causing money to be taken out of countries like Thailand, which is still seen as politically and economically unstable, and into somewhat safer investments in countries like the US and Australia. If the European crisis continues, the value of the Thai baht in 2013 could be even worse.
So far, Mr Bunyayothin says the fluctuations of the Thai baht are “not too worrying” as it hadn’t varied too much compared to other currencies in the region.
Meanwhile, the baht ended down again today, finishing out the day at almost 31.70 to the US dollar. Looks like those planning on bringing money into Thailand might want to wait a little, as the baht may fall again in the next few days.
