How the Thai election affected the Dollar rate

[hhfarang]

Why would the PT win affect the Baht/Dollar rate so much or is it just a coincidence? The dollar was on a steady comeback against the Baht for eight weeks before the election. On the Monday morning following the election it started falling and has been dropping like a rock ever since to the now lowest rate it has been since the Asian crash of '98.

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[migrant]

I would think it has to do with the debt limit here and our friggin politicians inability to come to an agreement.

[hhfarang]

I would think it has to do with the debt limit here and our friggin politicians inability to come to an agreement.

I would too so maybe it is just a coincidence, but the drop started exactly on the Monday after election Sunday here... we had debt limit crisis in the U.S. looming for many months before that...

Looking at the GBP and the Euro, I'd say the immediate freefall the day after the election was caused by a strengthened Baht across the board, but in the last few days they have recovered a bit so I think the election caused the immediate drop of the dollar as well, but the continued drop (of the dollar) lately is due to the debt limit deadline approaching (and idiot politicians who should all be beheaded, aka the French Revolution) so it is the double whammy for the dollar I guess!

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[playboy]

I guess that probably Thai's Bank increase of interest rate so that makes baht increase in values. While interest rate in US is 0.01% about for checking account.

[Dr Mike]

What Ameicans and Thais think about the situation may not be relevant as they have a conflict of interest, but it would seem that the rest of the world considers Thaland to be a more fiscaly stable place than the USA.

[STEVE G]

Why would the PT win affect the Baht/Dollar rate so much...

Perhaps it was the rather the fact that the military and establishment made noises about allowing PT to take power that gave a boost to the baht rather than PT themselves actually winning.
Any other scenario would likely have ended in more violent demonstrations so it at least it pointed towards some degree of stability.

[PeteC]

I don't think we've seen anything yet HHF. 25 or less very shortly would not surprise me if Washington doesn't get something done by August 2. Our government is an embarrassment to me and should be to all of us. Pete

[tonymaroni]

Why would the PT win affect the Baht/Dollar rate so much or is it just a coincidence? The dollar was on a steady comeback against the Baht for eight weeks before the election. On the Monday morning following the election it started falling and has been dropping like a rock ever since to the now lowest rate it has been since the Asian crash of '98.

BahtDollar.png

Actually other than the first few days after the election, the rate more than likely has nothing to do with what is happening to the Baht, but everything to do with what is happening to the Dollar around the world.

A more realistic comparison would have been to compare an Asian currency such as the Dollar/Yen rate and see that they are more in sync with the Dollar/Baht rates.

The election news didn't last long, with the Dollar losing buying power almost globally because of Americas problems.

Tony