Why is the baht still strong ? I just don't get it

[BKKSTAN]

Creeped about 30 satang!Probably the uncertainty from the coup!

So far,everything about the coup seems OK,but if it should change and democracy is not reinstated at a reasonable pace,not only would the baht probably continue to weaken, everyone would be upset at the USA, if they continued Military support!Now they have appointed a retired Military man as PM,causing more concern!I doubt the loss of support is only temporary and will be reinstated,plus back ''pay'',if the new gov't is seen as a good thing!

I think it is very hard for them to find an honest person to make PM

[JimboPSM]

From "The Nation"

UN: coup unlikely to hurt Thai economy

The United Nations on Friday predicted economic growth of 4.7 per cent for Thailand next year if the military junta which staged the coup last week maintains political stability.

However, the U.N. warned of a worst-case scenario in which gross domestic product (GDP)growth could fall to 3.1 per cent and inflation shoot up to almost 10 per cent, with the baht currency dropping by over 20 per cent.

So far UN economists "see no significant impact on the Thai economy" from the coup that ousted Prime Minister Thaksin Shinawatra, said the UN Economic and Social Commission for Asia and the Pacific (UNESCAP).

Don't hold your breath waiting for a 20% depreciation in the THB, that would be a worst case scenario and there are no signs of that so far.

There is a similar, but lengthier, report in the Bangkok Post.

[Bump]

This is from Thai Visa in refection to the doom of the dollar thread from last July I beleive. Don't see much happening with baht though which is still confusing, but when it comes to this I think I always will be.

How do you figure that this thread has been coming true? The dollar has not slipped 10% versus the pound nor other major currencies since the start of this thread, in fact it has been flat against the pound and has strenghened slighthly against the Yen, Euro, and gold. The thread was started on July 9 when one dollar would buy you 114 Yen, 0.78 Euros, or 0.54 Pounds and an ounce of gold costs $629. Today one dollar will buy you 119 Yen, 0.80 Euros, or 0.54 Pounds and an ounce of gold costs $576.