Tasty Thailand

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Baht Loses Biggest Amount in 2012: Down to 31.66 to the Dollar

 

Well it’s about time. The Thai baht is finally falling in value. It’s been over valued for the last couple of years with no valid reason for it but, in the last month, investors and currency traders have finally seen sense. In the last month, the Thai baht has fallen every week with the biggest amount this week, with a fall of 1.1 percent for the week. Those of us who live off foreign funds and have to regularly exchange dollars for baht couldn’t be happier.

Foreign investors are concerned about the economic crisis in Europe, which in turn has seen them reduce their holdings in Thai stocks as they fear another global downturn. The Thai Stock Exchange reported today that investors sold  7.3 billion baht more  in Thai stock than they bought causing the Thai baht in turn to fall. Data also show more people worldwide are buying the dollar, which is forcing its value to go up against currencies like the baht.

It’s not all bad news for Thailand, though. When the Thai baht falls, Thai exports tend to rise as the cost to foreign purchasers of them buying suddenly becomes cheaper. So, while investors are worried about losing money, companies and small businesses who make their living exporting Thai products overseas are likely to do even better.