Author Topic: Peso Surges vs Dollar; Closes at P42.795 (Read 1123 times)

hazel · « **on:** November 10, 2007, 04:37:53 AM »

Reuters

The peso surged to P 42.795 on Friday, the highest level the currency gained since June 2000, while the US dollar extended its decline to hit new lows after Fed Chairman Ben Bernanke's grim view of the economy.

The dollar hit a record low of $1.4739 against the euro and multi-year lows against other currencies after Bernanke's remarks on an expected slowdown in U.S. growth stoked expectations for another rate cut by the Federal Reserve.

Fears of more subprime-related losses at other financial entities also weighed on the dollar. That underpinned a rally in Asian currencies, many of which have hit multi-year highs despite intermittent central bank intervention to rein them in.

From its P 43.30 close Thursday, the local currency breached the critical P 43-to-the-dollar level and even hit P 42.67 in mid-trade.

Traders said expectations of heavy foreign fund inflows into the stock market and remittances from overseas foreign workers (OFW), the absence of the central bank's (BSP) dollar bids and the U.S. dollar's broad weakness had boosted the currency.

"I thought the 43-level will hold. But the market is trying to look for where the BSP will buy dollars," a trader in Manila says.

Many also sold their dollars for fear its downtrend might continue.

But while some analysts and economists see the strengthening peso as a positive sign for the Philippine economy, it is hurting the interests of OFWs and their relatives in the Philippines who are getting less value for their dollars.

Rudy Marribay says he immediately went to a money changer Friday to have the dollars sent by his child in Germany changed to pesos.

Marribay was dismayed when the $ 300 he received from his child was exchanged for a little over P 12,000, down from P 15,000 he was getting before.

"Siyempre malungkot kasi unang-una mga OFWs yung naaapektuhan" (It's sad because OFWs are the first ones affected [by the peso's rise], Marribay said.

OFWs for their part say they might stop remitting money to the Philippines for now to keep the peso from getting stronger against the greenback.

Bangko Sentral ng Pilipinas has been intervening actively to slow the peso's gains. The country's foreign exchange reserves have jumped 41 percent so far this year.

But analysts also suspect the central bank is happy to see the currency appreciate slowly, to alleviate the pressure on inflation from rising food and crude oil prices.

"We continue to see a stronger peso going forward because of expectations OFW remittances will pick up during the Christmas season," another trader said.

"This coupled with dollar inflows expected from the stock market and privatization of PNOC-EDC... our target is 42.50 now," he said.

The Philippine government is selling its 60-percent stake in PNOC-Energy Development Corp. to raise funds to meet its budget deficit target for the year.

The shares are to be sold on Nov. 21 to bidders which include foreign companies, and the government hopes to raise more than $800 million.

Other Asian currencies had far smaller gains. The Indonesian rupiah rose 0.35 percent to levels around 9,115 per dollar, the Singapore dollar was flat and the Malaysian ringgit gained a quarter of a percent to 3.3210 per dollar.

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thegirlnextdoor · « **Reply #1 on:** November 13, 2007, 03:21:05 AM »

I'm glad this topic was posted. My Filipino husband is an OFW as he works as a 2nd mate for a Japanese chartered company and the last time he spoke to me this past week our discussion was exactly what is posted here in TB.

He was telling me the exact story that many wives were complaining as well as OFW's themselves.

One goes to market to buy a loaf a bread he is now paying 1/4 of his hard earned working day just for the loaf alone (P26.50) it does not include the mayo sachay at P40.00 that his family will be spreading on their pieces of bread.

Rent for an apartment is running at P16.000 fully furnished. Unfurnished is P2.500 and up.

neither includes water, cable, or electricity.

We have our own home in which we stay.
The kids school projects are costly and dropped on us parents like a drop of a hat sometimes cutting into the families budjet and if they do not have it done they can not get a clearance even tho the testis paid for?

It's getting to be a harder life for many here as the minimum wage is not going up but the daily needs are increasing in price?

Linkback: https://tubagbohol.mikeligalig.com/index.php?topic=6171.0

thegirlnextdoor · « **Reply #2 on:** November 13, 2007, 03:22:45 AM »

test is (toinks!)(LOL)

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MikeLigalig.com

Author Topic: Peso Surges vs Dollar; Closes at P42.795 (Read 1123 times)

hazel

Peso Surges vs Dollar; Closes at P42.795

thegirlnextdoor

Re: Peso Surges vs Dollar; Closes at P42.795

thegirlnextdoor

Re: Peso Surges vs Dollar; Closes at P42.795