Dollar Weakens Further - Now in the 30's

[Gaybutton]

The exchange rate isn't getting any better for the US dollar. I'm sorry to say that now we're in the 30's. The following is the exchange rate as of 10:30 AM, Wednesday, March 19, Thailand time. I did 'beware the Ides of March.' Unfortunately that didn't help:

 

US Dollar: 30.95

 

Euro: 48.405

 

British Pound: 62.125

 

Australian Dollar: 28.68

 

Canadian Dollar: 31.055

 

I notice that once again the Canadian Dollar has more value than the US dollar.

 

It's not much consolation, but the Thais don't like this any more than we do. The following appears in THE NATION:

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More Baht, Oil Price Worries

 

Thai exporters yesterday asked the government to manage the exchange-rate policy competently amid increasing volatility in global financial markets following the latest bail-out of US securities firm Bear Sterns.

 

Federation of Thai Industries (FTI) chairman Santi Vilassakdanont said the deepening US sub-prime crisis could jeopardise the baht, due to an expected rise in capital inflows.

 

"Exporters are increasingly worried the US Federal Reserve Bank will further cut its interest rate [following the Bear Sterns crisis], resulting in huge capital inflows into Asia," he said.

 

"China and Vietnam may not be seriously affected, because of their tight capital controls. However, countries like Thailand could be hurt, because of our liberalisation policy, so the authorities need to manage the baht properly, or else it could become much stronger, because of the cancellation of the 30-per-cent capital reserve requirement."

 

The FTI chairman also urged the government to come up with urgent measures to help small and medium-sized enterprises and fishermen who are being hit hard by the unrelenting rise in crude oil prices, which soared to US$111 (Bt3,500) per barrel yesterday.

 

Bank of Thailand Deputy Governor Atchana Waiquamdee agreed the condition of the US economy and rising oil prices were still key risk factors for Thailand's economic growth.

 

Paiboon Ponsuwanna, chairman of the FTI's Food Industry Club, said the growth of food exports would be hit if the baht appreciated further significantly.

 

"If the exchange rate is Bt33.5 to the US dollar, our food exports will expand 7.6 per cent year on year. But if the baht become stronger, say, 30 to the dollar, exports will grow only 1.9 per cent," he said.

 

A growing number of food factories have reduced output, because they expect big losses from the baht's appreciation and higher production costs, he said.

 

The Nation, APDJ