Wow how things can turn around with the dollar to Philippine peso exchange rate in a short time!


Dollar to Philippine Peso — The Dollar Gets Stronger

Just when I was sure the dollar was going to dip below P40 before we say any improvement the dollar started going back up. When it dipped below P42.99 I had a strong sense of dread. It has been two weeks since I last wrote about the dollar to Philippine peso exchange rate and the outlook has changed a lot!  Of course, with things changing that fast, they could change a lot again.


Feeling Like A Million Dollars but For How Long?

With the Fed being stubborn on interest rates and the credit limit debate going on in Washington, I was worried. It was hard to hold the faith in the good old greenback. I even wondered if the doomsday prophets might be right. Then I came to my senses and realized that things may get much worse, the dollar will go back up. Simple economics demands it.

Market Fundamental Vs Market Sentiment

Now, wow I seem excited, it is a very guarded excitement. I’ve been doing a lot of reading about exchange rate factors. I’m reading a book now on currency value forecasting. I got a big laugh when it started out by saying that the best forecast is whatever the currency is trading for at the moment. I haven’t finished the book yet but it seems to be saying that market sentiment has more to do with the value of a currency than my favored fundamental analysis.

And we are seeing that right now in regards to the dollar to Philippine peso rate of exchange. The dollar is doing better in large part to the anticipated devaluation of the Euro. A lot of that devaluation is expected based on the rumor that Greece will need another bailout and very possibly a debt restructure. I think they’d call that bankruptcy if it were you or I.

Dollar to Philippine Peso — The Fundamentals

Another factor in the rise of the dollar to Philippine peso rate is because most every Asian currency is in decline. Growth is expected to decline as inflation rises in Asia and the Philippines is no exception. The Philippines has been hit less hard than other countries in Asia but it too has seen the value of its currency fall in recent weeks. Now, I’m back to considering the fundamentals that affect the dollar to Philippine peso rate of exchange. It is very hard to put a value on market sentiment.

I’m writing this aritcle late in the day on March 18th 2011. I’m writing it now as I may be out of town when I want it to publish on the website. Hopefully, I’ll have time to come back and update it if necessary between now and Saturday when it will publish.`Hopefully, there will be more good news by then.  Hopefully the dollar to Philippine peso rate will not have not declined so much that I have to re-write it.  That is completely possible.  Though not likely.

At this time, the dollar to Philippine peso exchange rate is at 1.00 USD = 43.2500 and that is down just a bit from yesterday.  There was a significant increase in the value of the dollar yesterday which may have triggered some selling off.  There were also some poor numbers regarding housing starts in the USA.  They were up but much less than expected.  These seems to have turned stock market futures higher.  When people are investing in stocks, they are not buying bonds and that tends to cause the value of a currency to fall.  Once again, I’m talking about fundamentals that affect the dollar to Philippine peso exchange rate.

Things change very fast in the Forex and it is not the place for the casual investor to tread.  For me, it isn’t about investing, at least not yet, it is about having enough money to live a comfortable life in the Philippines.

To find other articles I’ve written about the dollar to Philippine peso visit that link.

Living in the Philippines is considerably more enjoyable when I the dollar to Philippine peso improves in favor of the dollar.


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