Dollar to Philippine Peso Currency Trading Week ending 06/30/11

Dollar to Philippine Peso Roller Coaster

A few days ago the dollar was at 43.4xxx per 1 USD.

This morning it was at 43.1699.

That’s a pretty quick drop in the dollar to Philippine peso rate of exchange. Greece once again seems to be out of immediate danger of default but I just have this feeling it isn’t over just yet. The rise and fall of the dollar to peso seems to be more heavily influenced in the short term with what is going on Greece. That’s what those in currency trading are most interested in and that determines market sentiment.  What the market thinks will happen often does happen because people start to invest in that way.  Currency traders must have a high degree of sudden heart attacks and high blood pressure.

I sent money via Xoom last night, bad timing on my part but when one is out of cash, one must replenish! As I’ve said many times, these small changes don’t matter much to the average expat. A change from P48 to P42 over a period of time does matter and it matters a lot.

Here is it the end of the Fed’s second round of Quantitative easing and the dollar is falling.

Inflation still appears to be low in the USA, I wish it would go above 2% myself as I need a raise and I won’t get one unless it does. Totally selfish on my part, I know. Federal retirees will see their 3rd year of no cost of living adjustment if the rate of inflation stays below 2% and if adjusted annually, the current rate of inflation is below that.

It is well established in history that rapid expansion of the money supply is inflationary and that’s what the Fed has done. Until the US economy starts to grow, there will be no interest rate increase. The US has massive debt and raising its rate will make it even most costly to service. With no growth in the economy, there is no growth in tax revenue.

It really sets up a nightmare possibility. If there is inflation with low growth, the Fed can do several things but they will all slow the economy even more. Inflation is the Fed Chairman’s worst nightmare. If high inflation does occur, it is going to be very bleak for expats living in the Philippines as we will not see improvement in the dollar to Philippine peso rate. It will likely get worse.

Dollar to Philippine Peso Exchange Rate

Here are the number for the dollar to Peso currency trading for the week ending 06/03/11

Just more bad news for the dollar to Philippine peso and the American expat that is making their home in the Philippines.