Rates Are Up!

[OnMyWay]

No need for this post since late 2018!  After hovering at 48+/- since December, rates jumped this past week.  We exchanged at Villarica today for 48.62.  Is this a reversal of the two year trend?  Nobody knows, but I think the fact the U.S. interest rates jumped this past week had something to do with this uptick.

1 month chart                                                             5 year chart

  

[Tommy T.]

Yeah, OMW... it's killing me - 5% less than a while ago. At least we got the home mostly done while rates were okay!

[scott h]

Yep, we replenished our high exchange rate pesos in our credit union that we have been using the last few months,,,,,hope it continues

[Yeochief]

It might be due to new leadership in the United States.

[Dave Hounddriver]

47 minutes ago, Yeochief said:

It might be due to new leadership in the United States.

I read that the new administration is doing things which are expected to force interest rates up, which will create more demand for $US which means higher value of $US.  

[OnMyWay]

1 hour ago, Dave Hounddriver said:

I read that the new administration is doing things which are expected to force interest rates up, which will create more demand for $US which means higher value of $US.  

Possibly higher value against other currencies, but when you print trillions of dollars, those dollars are going to be worth less eventually.  Eventually inflation could get ugly.  I hope not.

[Snowy79]

When I was lookng at my retirement visa last year it was in Dollars.  I was getting 1.16 Dollars to the Pound Sterling. Today it's 1.41 Dollars to the Pound Sterling.  That's a serious drop in value.  The Dollar has also crashed against the Euro.

Peso wise the same time last year I was getting 59.72 Peso to the Pound, today it's at 68.60. 

[JJReyes]

Philippine government is borrowing heavily to prop up an economy that has been devastated by the pandemic.  This is one factor contributing to a lower value for the Philippine peso.  Another is the decrease in exports and OFW remittances.  For several months there appeared to be an inflow of foreign currency.  I suspect this came from wealthier Filipinos converting their dollar savings to local currency.

[hk blues]

3 hours ago, Snowy79 said:

When I was lookng at my retirement visa last year it was in Dollars.  I was getting 1.16 Dollars to the Pound Sterling. Today it's 1.41 Dollars to the Pound Sterling.  That's a serious drop in value.  The Dollar has also crashed against the Euro.

Peso wise the same time last year I was getting 59.72 Peso to the Pound, today it's at 68.60. 

I exchanged 4 times last year - the lowest was 59.50 and the other three hovered around 62.5 give or take.  So, an uplift of abut 10%.  I expected it to get to 70 this year but not quite so quickly.

[OnMyWay]

In case you missed it, the dollar / peso rate has been surging.  After being under 48 for the first half of June, it is 49.12 on XE this weekend.  We drove by Villarica and their weekend rate was 48.90.

I read that some economic news was weakening the peso.