Foreign exchange rate – popularly known as forex or FX in abbreviated form – is the largest market throughout the globe. To your utter surprise, a cosmic amount of $5 trillion is traded in currency industry day in and day out. The intended purpose of this blog is not to teach you how to be a success in this business but inform you about the very primer about currency exchange rate. This blog is also focused on the movement of Thai exchange rate to help people understand where the trend is heading to.
|Thai Exchange Rate|
Exchange Rate – What It Is All about
An exchange rate is the rate of conversion between two currencies. Knowing the currency rate is very important if you are traveling another country. On the national perspective, currency exchange demands importance in times of export and import. Every economy is an open economy implying that each country in involved in international trade. Needless to say, exchange rate between currencies of the two trading countries plays a pivotal role during this time. For simplicity, you may consider the exchange rate sort of price of a commodity. From the theoretical angle, identical assets should fetch the same price irrespective of the countries where they are sold in order to keep the intrinsic value of one currency in terms of other on an even keel.
Recent Trend in Thai Exchange Rate
In the last month, there has been a slight depreciation in Thai Exchange Rate against the US dollar. However, the ‘dipping down’ of Baht against the US currency has been continuing over the last 12 months. During this phase, Thai exchange rate has been devalued by 3.33 percent against US dollar.
If we look back at history and follow the exchange rate between Thai and dollars, we will get to know that the rate hit a record high of 55.50 in Jan, 1998 and touched historical low of 20.36 in July, 1981. Here you need to know two most important aspect of Thai exchange rate – Thai Baht spot exchange rate and Thai Baht forward rate. The quote and exchange of Thai exchange rate happens on the same day whereas in case of Thai forward rate, quote as well as delivery and payment are done on different dates.