The baht on investment
issues that would be discussed quite a lot in this period. There would not be the subject of the baht.Who appreciated steadily. Since the beginning of the year until mid-April. The baht has appreciated over 6%, almost the highest in the region. Although weakened somewhat towards the end of last month. But compared to the year ago. The baht continued to appreciate by more than 4% of its exports, which have been directly affected by the appreciation of the baht. This makes the revenue being recovered from exports in baht currency dropped already. In terms of investor Especially those who are investing abroad. Any impact from the baht appreciation as well. Due to loss of foreign exchange into the return on investment in the overall decline
simple example, such YTD Index S & P 500 in the US rose more than 12% denominated in dollar. US $ But when converted back to the baht already. Return is just about 8%, or a loss of foreign exchange to offset the 4% yields should be reduced or if the foreign investment at a loss. The baht's appreciation. It will make a return on investment loss much more. For example, gold Gold in global markets since the beginning of the year. Dropped about 11%, but the price of gold bullion in the country. Back dropped to about 15% due to losses from foreign exchange to further itself in contrast. On condition that the baht has weakened. According to invest in foreign assets. It will affect foreign exchange earnings into further. For example, in 2548 the Thai baht depreciated by more than 5% in the price of gold bullion. Has risen to about 24%, while the price of gold on world markets rose to only about 18% of the foreign exchange market. As markets are very volatile. To speculate or predict that. Gain or loss on foreign exchange. May be hard to do. To reduce the risk of foreign exchange. The Foreign Investment It should be protected from exchange rate risk (hedging) with the use of derivative financial instruments such as futures contracts, forward or swap, which will reduce the volatility of returns on their investments abroad.