Euro weakens again

[leadpencil]

Below is an interesting article sent to me this morning by a currency broker. Sterling - euro rates are better today however only due to the weakness of the euro. Even though the Thai baht seems to be plotting its own course, the weakness of the Eurozone looks set to continue for the timebeing and this will obviously not help matters. Sterling is stronger than this time last year however I do not think it will recover any ground against the Thai baht.

 

Article

 

The seesaw that is the current financial climate continues to dish out huge volatility, particularly in currency markets.

 

The recent raft of encouraging macro economic data out of Europe’s largest economy took a blow yesterday as German factory orders posted a surprise fall of 2.2%. This won’t change the trend just yet as the domestic market seems to be holding up well, allowing the Germans to feel more comfortable about a rounded recovery rather than export reliant.

 

 

 

More worryingly however, is the apparent fragility of the European banking sector. As banks in the UK are posting reasonable quarterly performance figures, Germany’s leading banks have been told to raise €105 billion to meet the capital requirements of a recent global banking regulatory overhaul. With the exception of France, this seems to be a running theme as Spain, Portugal and Greece all with a mountain to climb to rebuild balance sheets. If there is something higher than a mountain on this earth, then that is what the Irish banks have to climb.

 

 

 

The UK continues to print contrasting economic data. The Nationwide house price index showed a second consecutive fall to -0.9% last week. In contrast to that, fellow lender Halifax announced a 0.3% rise in its own index earlier this morning. There are bigger concerns around the Government’s spending review next month, where details of their proposed austerity measures will be released to the general public. Job losses and spending cuts will surely put pressure on the pace of economic growth; however, the damage will be prolonged over the 5-year plan.

 

 

 

If you needed any reminding that conditions are still fragile, the Swiss Franc climbed to an all time high versus the Euro yesterday, underlining the lack of investor confidence and limited risk appetite.

 

Whilst US unemployment is still at an eye watering 9.5%+ and with UK spending cuts just around the corner, Sterling will be pegged back against the other majors for the short term.

[Expat46]

Checking exchange rates daily - Thai Baht towards other currencies - it's indeed depressing reading - down down down.

Not only Euro or Pound or Dollar - but all currencies seems to take another dive towards Thai Baht.

Tourism in Thailand is in for more hard times - Who said 14 million tourist this year?

 

Exchange rates:

http://www.bangkokba...er_fxupdate.asp

Edited September 8, 2010 by Expat46

[blue1878]

In recent I have started visiting Pattaya/Thailand 2 times a year.

 

When I was getting 70B to the english £ two trips a year wasn't a problem.

 

Now that I'm only gettiny 50B or below to the english £ I am having trouble funding the 2 trips

 

 

[benny31]

Weak Euro

Today's rates

Edited September 10, 2010 by benny31

[leadpencil]

I have posted it elsewhere but one of the best Pattaya related things that I ever did was open a Thai bank account. It has saved me a fortune over the last few years. I was lucky enough to be able to transfer money in when exchange rates were still relatively good and I am still spending that money now.

 

Although it is always a gamble, I would recommend other BM's doing it even now with the rates as they are as I can not see them getting any better.

[mokum]

The euro is 1.302 now but i just checked the k-bank and the euro dropped to 38.8, still dont understand anything about it anymore, the baht cant be that strong for sure!

[Sebbe]

its gona be expensive next trip

[furryman]

The Baht is really strong right now, the economy in asia is still growing and doing well. Asian economies are somewhat separated from the problems in the west.

 

Tourism is only 1/10 of the economy in Thailand so despite that sector being down the other sectors, mainly exports to china, are making up for it.

 

While china is making a Mint making and selling stuff to the west, the Chinese that now have money are buying imports from all over the rest of Asia.

[Al.]

The Bangkok Bank Foreign Exchange Rates Page has historical rates back to 1997 I just checked todays rate 15/09/2010 £1 = 47.01 - 15/09/2005 £1 = 73.43

Al.

[leadpencil]

The Bangkok Bank Foreign Exchange Rates Page has historical rates back to 1997 I just checked todays rate 15/09/2010 £1 = 47.01 - 15/09/2005 £1 = 73.43

Al.

 

Ouch!