Dollar to Philippine Peso Exchange Rate Falls
No matter how hard I push, the dollar to Philippine peso currency trading wheel barrel in my head, the dollar has started to slide again. On Monday, October 10, 2011 the dollar took a brief drastic ride that reminds me of the buses zooming up and down National Highway One in Cebu. It looks like a roller coaster. This chart from XE shows what I am describing.
The dollar has been falling for several days but on Monday it suddenly fell from around43.4 down to near 43.1 but then it bounced right back up just as fast. Then again on the 11th it nose dived for a bit but the day ended with the dollar up when trading against the Philippine peso. This is the first rise since in several days.
On Friday President Aquino approved a physical stimulus package which seems to have triggered the decline of the dollar to the Philippine peso. Though it was approved Friday, it had been public for several days before. Aquino has received a good deal of criticism from some groups because of the lack of government spending. His reasoning has been that he was first working on reducing corruption so that a stimulus package would be better used.
A report in August shows that exports from the Philippines had dropped 15.1% over the prior year. That is a devastating number! Suggesting some kind of stimulus is needed and pointing to the troubles in Europe and the USA. This package appears to be raising the expectations of future growth in the Philippines.
I also noted that the dollar seems to be doing well against many other currencies. I checked only a few at a quick glace but the dollar is up against many other currencies over the last week. The Swiss Franc would be one exception that I noticed.
So it appears to me that the dollar is up but the Philippine peso is up even more. This fall in the dollar appears to be in response to a stronger peso and not a weaker dollar. That is good news to expats all over the world. It could mean we’ll see the generally upward movement of the dollar return soon. I know I sure would like to see P45 again but I don’t know if it will even hover around P44.5. I think the trend is up but I sure wouldn’t invest any of my money based on that belief.
Filed under: Dollar To Philippine Peso
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