Dollar to Philippine Peso Currency Trading After The June Fed Meeting
The dollar to Philippine peso didn’t seem to even much notice that the US Federal Reserve board had its June meeting this week.
However it left currency traders analyzing every word that was spoken and making projections here and there.
Before the Fed meeting, the dollar to Philippine peso rate was at 43.798 to 1. The dollar is flirting with a 44 peso! While the dollar benefited in most of the world because of the Feds disclosures along with the on again, off again problems in Greece, the dollar fell against the Philippine peso.
Overall the dollar seems to be tending up now. It may have hit its bottom with the peso about six weeks ago but I’m not going to speculate because I’ve learned something through writing about the exchange rate.
In the short term, fundamentals underlying a currencies value matter very little. Market sentiment is more important. What investors think will happen and that is a self fulfilling prophecy.
Something else I’ve learned, financial reports from Bloomberg and the like, they don’t matter much to your average expat. If the value of the peso goes up .06% overnight, I could care less. Yet the financial papers want to sensationalize it. They love to talk about new highs and new lows. Unless you’re trading currency and doing it in large amounts, these small fluctuations just don’t matter to most of us.
Dollar to Philippine Peso Currency Trading for 2011
I took a look back at where the peso has been over the last year. Here are some numbers.
Jan. 1st 43.6399993896
Feb 1st 44.1899986267
March 1st 43.4799995422
April 1st 43.3099959616
May 1st 42.7900009155
June 1st 43.0599998878
June 24 43.4700012207
So, how is the dollar really doing against the peso this year? Not bad. It is holding its own, virtually
unchanged. At its lowest point in those numbers a guy with a pension of $2000 a month saw a reduction of about $35 a month. The same guy has lost about $100 a month though since the dollar to Philippines peso rate was at P48. That won’t kill you either but $100 is significant money for a guy earning only $2000 a month.
Still, I have far more opportunities in the Philippines than I would living in the USA. The conditions that lead to the low cost of living in the Philippines will change over time but they are not here yet. They are still a long way off.
Philippine Peso to Dollar — The Rest of 2011
A friend of mine predicted in January of 2011 that he didn’t think the dollar’s rate would improve much in 2011 and I think he’s right. We are half way through the year and so far, the real change is almost nothing.
Probably the most important part of the Fed meeting was that the chairman indicated that there would not be another round of money creations that has been called quantitative easing.
I have been reading that many investors thought there would be. I don’t know why. It doesn’t seem to have helped. We don’t really know that though, the US economy might even be in worse shape than it is now. Perhaps it helped more than it appears. Just because things didn’t get better doesn’t mean they wouldn’t have become worse if there was no action at all.
For now, the Fed is taking a hands off approach to let what they think is an under performing economy rise up to where it should be. I still think the US economy will start to do better in 2012.
For now, we can thank Greece for helping prop up the dollar; also a more bearish outlook on stocks is sending people into safer and more liquid investments. A strong US stock market usually means a lower value for the dollar. There are inflationary pressures in most of Asia and that includes the Philippines. This too has put the brakes on the slide of the dollar to Philippine peso.
The idea the dollar will never improve denies fundamental economics. That invisible hand provides balance and the opposing forces on a currency will push it up and push it down but logic tells me there are better days ahead for the dollar to Philippine peso currency trade rate.
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The dollar to Philippine peso didn’t seem to even much notice that the US Federal Reserve board had its June meeting this week.
Best vid I can find on the subject for now. I’ll try to come up with more after the meeting comments. There is one vid of the press conference but it is 54 minutes long. Don’t think many will watch all of that.
Hi Rusty, I’d like your recommendation on what type/brand of aircon you
use in your rental house, how many, the cost, and location. Since aircon
can cost more than rent, I’m sure this would be of interest and also
how to save money on utility bills.
Since one has no control of the currency exchange rate, why do you
insist on weekly updates of fed, etc. instead of helping us with suggestions on how to lower costs?
I bought as much aircon as I could afford. My home is older and leaks like a open window. Hard to cool. What I got also had to do with what would fit in the windows.
My windows have security bars. I had to return one aircon I bought because it wouldn’t fit in the slot that was welded in place for the aircon.
I bought a sharp because of the HP rating per dollar. I don’t buy fort he sake of brand names in most cases. I honestly don’t know which is the best brand and don’t have a recommendation.
I think what you will buy will really depend on what you rent. Certainly how many and where you put them depends on what you rent.
For me, the problem I have is they are unable to cool as much as I’d like to see.
The cost starts at P5000 but most are in the P10,000 to P20,000 range as best as I remember. I bought mine over three years ago.
I recommend you have them cleaned every other month, sometimes I forget. I need to get mine cleaned next month, really, in this humidity every month wouldn’t be a bad idea. Cost is P300 in my area.
I was pretty much broke when I got here, buy as much aircon as you can afford and as much horse power as you can get, they are more often rated in terms of horse power than BTU. I didn’t get enough horsepower.
Many areas in my home have 18 foot ceilings, not really conducive for aircon. I only have two, one in the bedroom and one in the office which I never furnished so it goes unused except when the one in the bedroom is being serviced.
basically it is a personal choice depending on what you can afford and how big of an electric bill you can absorb.
RUSTY
Why dont you set up a match making page for those of us that are interested
Dating sites have legal issues in the Philippines. It is also very hard to attract Filipina to them. I once setup a social site. With sites like date in Asia, FaceBook and Tagged, just not much of a need for me to fill there.
It was three years ago when I read things on the net that caused me to stay clear of that area. I don’t recall the particulars now.
If such a site was deemed to be a “mail order bride” site I could spend a lot of time in jail. I see people flirting with these kinds of sites, they don’t do well and they expose one to great legal risk. Risk, I’m unwilling to take.
One actor on TV, I think it was Alex Baldwin? Not at all sure if it was he or not, said on late night show that he was going to go to the Philippines to find a mail order bride. He was bared from entering the country at all because of that statement.
I wouldn’t recommend long distance relationships with Filipina. Lots of information here as to why. Lots of places to do ahead and do it if you like.
I do plan to add some more links for sites related to that.
The peso to dollar rate today is at 43.4000015259. So down a little. Stock futures are up today in the US which usually means the dollar will be down world wide. More of a concern for currency trading activities than expats. It does point out market sentiment which changes like the wind.
That video above, I found interesting that Fedex chairman said cost are going down. I didn’t expect to see that. Having some trouble wrapping my mind around it.
Well, I just sent my fiance some cash today via western union, which I know is not the best guage for exchange, but the rate they gave was 42.19 to the dollar..
You’re effective rate was much less once you figure in the cost of using the method. WU fees are not as high as they use to be, from what I can gather but still more than double the cost of using using Xoom. Xoom’s exchange rate is a little better but the difference is insignificant. Xoom will even deliver to her door if that’s what you want. Probably better to pick the cash up though. It is faster. You can send $2999 or $50 for $5.99
If you’re going to move to the Philippines, I would defiantly setup a Xoom account.
I’m going to give Wells Fargo a try soon, I have to call them thouh to set the account up and I hate telephones.
I used to be a regular user of Xoom, but then one day they cancelled my account for “violating the user agreement”. I tried contacting them, even had my attorney write them, they refused to tell me what I had done to cause the cancellation. What’s more, after they told me they had cancelled my account, they still put through a transfer that I had already done through another service, thus causing my account to overdraft. I would strongly recommend AGAINST using Xoom.
Hi Scott, yeah, I’ve heard that before.
My guess is that you’re using two services might have had something to do with it. I don’t understand what you’re saying exactly there though.
Now, in no way am I suggestion you were doing this but I’m guessing those involved with kiting might do something like that. Or those involved in transactions that Xoom doesn’t approve of.
Honestly, it makes zero difference to me how one does it, I do know it has worked well for me SO FAR. I see so many people say that about Paypal though and I know just because I’ve not had a problem so far, doesn’t mean I never will. There are some ads for Xoom around here, I’ve made $18 off them in three years.
I feel though it would be foolish of me to include links to their site when I know I know they have one. I still haven’t been paid for those $18 as that’s all I’ve made and I have to make $25 to get paid. lol It isn’t the reason I suggest them.
I do because they work great for me. As with all things, you’re actual millage may very. You’res did and you are not the first person I’ve heard of being cut off suddenly and Xoom will not disclose why.
As long as they don’t hold my money though, like Paypal will, I might not like it but I don’t really see how they harmed me.
I am probably going to change to Wells Fargo in August. I will do a test transaction first. I’ve gotta change my checking account type first. Looks like I have to call them to set it up and looks like they are a pain in the but too but it might be easier for me to use their service. Worth looking into for me.
You’re overdraft can hardly be blamed on them and I strongly suspect those two transactions were the reason. I’m asking myself why would you need to do that. They likely asked the same thing. I can think of reasons though, an affiliate program of some kind perhaps. My guess that other transaction was already approved and in process when they terminated you.
Even after they terminated you, you tried to get your account back via a lawyer. If you rally hated them, why would you do that?
hi rusty it is frank and i was reading your last blog entry and i am interested in finding out how to use xoom are they like western union because i just go to the western union office near me and just fill out a form and give them the money to transfer to the philippines and i get a recepit with the m.t.c.n. number on it and i just give her that number and that is all that she needs to pickup the pesos there in the philippines so i guess you have to put the money on your debit card in order for you to use this xoom money transfer service is that not so please let me know you can email me at my email address ok and thank you for the heads up on you adding some new dating site links in the near future and so i will say thank you. sincerely. frank.
If you don’t mind paying more then keep on doing it that way.
I don’t like having to go to the WU office. I even did that online when I lived in the US but then you had to call WU too which I hated.
Now, I go to Xoom, I set up the payee once, and put in the amount I want to send. 2o minutes later it can be picked up locally or the way I do it is send it to my bank account which usually takes a couple of hours.
Now, sometimes Xoom will slow things down the first time you use it because credit cards are involved and I didn’t go to the office and hand them cash.
I had that happen twice when I first started using them but only when I used my Philippines IP. Others do it from the USA and don’t have that problem.
Some people hate Xoom, I’ve heard of people that got banned by Xoom and refused service with no explanation. That’s the only complaint I’ve seen, that and my first transaction taking days. Again, I was in the Philippines and a Philippines IP is not the most trusted one by financial organizations. Even this site blocks a lot of Philippines IP addresses, it would block more if I turned up the security just a notch but I think it blocks too many.
Use whatever floats your boat, I am not going to pay more money for worse service.
The next time I send money, I only have to enter the amount, it already knows where to send it.
Well’s Fargo offers it for .99 less so I’m going to call them soon and probably switch to them.