Rates Are Up!

[hk blues]

The same thing happened to the GBP a year or more ago - it was a result of a technical movement rather than anything sinister. 

[OnMyWay]

Dollar is staying strong against the peso.  Got 52.30 today at Villarica.

[Snowy79]

I would expect due to a certain nation switching from taking Dollars to Rubles for oil causing a bit of a drop in the Dollar value.

[OnMyWay]

53.24 on EX this morning!  Highest since 2018.

https://www.manilatimes.net/2022/06/11/news/national/peso-takes-a-beating-against-dollar/1846885

THE Philippine peso had its worst day in three-and-a-half years, falling to P53 to the United States dollar on Friday.

The local currency bled 5 centavos to $53:$1 from the previous day's close of P52.95. It hasn't been this soft since Dec. 20, 2018, when it closed at 53.10:$1.

The peso's slide was probably due to market participants anticipating the US Federal Reserve's (Fed) 50-basis-point interest rate hike next week, Domini Velasquez, chief economist at China Banking Corp., said.

"Generally, we still see USD-PHP (dollar-peso rate) moving upwards both because of the Fed's aggressive monetary tightening cycle and domestically, the value of import purchases are still bound to increase as oil and food prices continue to remain elevated. Hence, still more demand for dollars," Velasquez said.

ING Bank Manila senior economist Nicholas Antonio Mapa said the peso was simply following the trend among regional currencies.

Edited June 29, 2022 by Jollygoodfellow
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[OnMyWay]

XE is 53.48

[Gator]

3 hours ago, OnMyWay said:

XE is 53.48

Likely in response to the Feds raising the rate by 0.75%. Biggest raise since 1994. And another rate hike might be in the pipeline ……. Commie Joe’s answer to hedging inflation (he doesn’t care if millions loose their jobs and the USA slides into another recession sooner then anticipated, he won’t remember anyhow, lol). 

[Mike J]

9 hours ago, Gator said:

Likely in response to the Feds raising the rate by 0.75%. Biggest raise since 1994. And another rate hike might be in the pipeline ……. Commie Joe’s answer to hedging inflation (he doesn’t care if millions loose their jobs and the USA slides into another recession sooner then anticipated, he won’t remember anyhow, lol). 

Lets not allow this topic to slide into a political discussion.

[OnMyWay]

It went over 54.50 and broke the 2018 record before dropping back down to 54.35.

[OnMyWay]

XE up to 54.70 now!  Villarica was 54.40 this afternoon and BPI online was 54.35.  Both should be higher tomorrow.

[Mike J]

Weak peso is good for exports and AFWS, as well as expats whose income comes from overseas.

https://news.abs-cbn.com/business/06/23/22/weak-peso-to-boost-exports-benefit-ofws-economist

MANILA - While many Filipinos are worried over the depreciation of the peso, economist Solita Monsod said the weakness of the local currency also has benefits for the domestic economy. 

The peso closed at P54.47 to the dollar on Wednesday.

"We seem to be the only ones worried when the price of our currency goes down. Europeans are happy when their currency depreciates," she said. 

Although the country would have to pay more for its dollar-denominated debts, the weaker peso could boost exports and reduce imports, Monsod noted.

"Pag bumaba ang piso natin (If the peso goes down) that means our exports will increase. There will be an increase in our competitiveness in exports," she added.

More Filipinos will also buy local goods compared to imported items, which will be more expensive as the peso weakens, she added.

Monsod said those who depend on imported goods would be the most affected.

Meanwhile, families receiving remittances will also benefit from getting more pesos for every dollar sent home.