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Falling yen takes baht with it THE baht broke through the key psychological level of Bt44 against the dollar yesterday, dragged down by further weakness in the Japanese yen. Dealers said Bt44.5 was the next resistance level, which could be tested within the month. They believe that if the yen declines to ¥140 against the greenback, as anticipated by some foreign analysts, the Thai currency would follow to Bt45, a level it last touched in March 1998. The local unit edged down shortly after the market opened at Bt43.96 to Bt43.99 to the dollar, before hitting its morning session low of Bt44.02, dealers said. During the same trading session, the yen fell to ¥122.5 against the dollar, from ¥121 a day earlier. The local currency stabilised briefly thanks to dollar selling by exporters as well as foreign banks, who seized the chance to take profit from the strengthened dollar. But the currency`s downward trend gained momentum in the afternoon as importers entered the market to pick up dollars. That forced the baht, which had re-bounded slightly to Bt43.92 in the afternoon, down to Bt44.02 to Bt44.05 at the close of trading, dealers said. The yen ended at ¥122.6 against the dollar in Asian trading but slipped further to ¥123 in Western markets yesterday evening. "The Thai currency will not able to resist the downward trend in the region. We saw the Singapore dollar plunge today to S$1.774 against the dollar, and that is why the baht moved down," a dealer from a major bank said. "We expect the Thai baht will continue to drop on Monday," the dealer added. Meanwhile, Jemal-ud-din Kassum, the World Bank`s vice president, was quoted by Dow Jones Newswires as saying that Japan`s economic troubles pose significant risks for Asian economies, especially Thailand, which could be among the worst hit. "There could be a significant effect on the region but some economies are more vulnerable than others," Kassum said in an interview. "Thailand, South Korea and Philippines could suffer due to export exposure to Japan." Kassum noted Thailand`s exports will slow down as a result of reduced demand both from Japan and the United States - its two major export destinations. The World Bank doesn`t expect Thai exports, a key player in the country`s economy last year, to drive economic growth this year. Exports fell 3.9 per cent in January, as a result of reduced global demand, particularly for technology products and electronics. This pushed the country`s trade balance to a $282 million deficit. The World Bank still expects Thailand to post a trade surplus this year with a slight recovery in coming months, but in the longer term, things look bleak. "We are still projecting a surplus but it will be declining," Kassum said. "But we could see a sustained deficit two to three years down the road." BY JIWAMOL KANOKSILP The Nation, Dow Jones Newswires - 17.3.01 - |
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| aus der Diskussion: | Waste or make money in Thailand |
| Autor (Datum des Eintrages): | BodyG (16.03.01 23:25:35) |
| Beitrag: | 554 von 611 (ID:3119834) |
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