Peso rises on news of extended stimulus by US Federal Reserve


MANILA, Philippines—The peso climbed on Tuesday amid speculations that the US Federal Reserve would continue with its stimulus program for an extended period.

The local currency closed at 40.735 against the US dollar, up by 17.5 centavos from the previous day’s finish of 40.91:$1.

Intraday high hit 40.71:$1, while intraday low settled at 40.91:$1.

Volume of trade reached $1.16 billion from $1.2 billion previously.

Traders said some fund owners have been expecting the US Fed to continue with its third round of stimulus through bond purchases, called quantitative easing 3 (QE3), beyond this year. An extended period of stimulus is expected to boost global liquidity, some of which are believed to go to emerging markets like the Philippines in the form of portfolio investments.

A rise in inflow of foreign capital to the Philippines is seen to boost the peso and yields of peso-denominated securities. As such, yield-seeking investors were urged to take advantage of the potential income opportunity by purchasing pesos and peso-denominated assets.

The rise of the peso on Tuesday came with the increase in the Philippine Stock Exchange Index. The PSEi rose by 42.31 points to 6,234.73.

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  • Ronnel L

    The only reason that a country will want a strong currency is to attract investor or speculator to the currency and view it as a safe haven..but in reality, majority of the countries in the world favors a weaker currency to preserved their current account surplus…The Philippine government should control the peso’s appreciation; its not good for our export and we may become a deficit country.
    The US Feds stimulus program is like printing money to inject liquidity which in effect weakens the USD. The other reason why our peso is appreciating kasi dahil sa current account surplus natin at sa OFW remittances na pinapalit ng mga pamilya ng OFW to peso. Eventually, this is not healthy and our export, and the economy, will suffer.

  • Benjan

    ok lang na tumaas ang peso kahit na maliit ang palitan to dollars basta bumaba lahat ng price ng mga basic commodities and services i.e. gasoline, bigas, mantika, asukal, pamasahe, power, water at phone bills.

    eh ang kaso lang hinde maramdaman ng family ko sa Pilipinas ang pag baba… yung dating 1000 USD na remittance 45,000 Pesos na now.. 40K+ nlang sayang ang 5K.. na nawala pandagda sana sa tuition fees ng mga pamangkin ko or para sa kanilang vitamins or gamit sana sa school yun…

    Yung rate ng Dollar to Peso now is just way back 1996… sana ibalik din lahat ng prices during this year para balance at maging fair sa aming mga OFW…

  • parefrank

    How funny. In the rest of worlds economy, a local currency gets lower if the US dollar goes up, In RP it is contrary. If other countries do better, the peso is up, if other economies go worde, the peso is up. It is like the peso is now the leading currency, not dollar or euro. And all simply to get the OFW remittance billions cheap. A real pro poor policy.

  • kimo211

    good!!!!!  sana  maging  1 to 1,,,para  mabawasan,,,ang  mga   mayayabang  na  balikbayan,,,hindi  lahat   mga   selected  balikyabang….once  again,,,great   for   Pinas,,,economy,,,keep  it  up.

    • Ronnel L

      ignorante ka kasi sa finance kaya ganyan pag iisip mo….pag naging 1:1 ang dollar at peso baka akala mo pati bilihin sa atin magmumura?. So ibig sabihin kung dating 40 pesos ang isang bagay na binibili ng US importer kailangan lang nya ng 1 USD at kung magiging 1:1 ang dating 1 USD na bibilhin nya mangangailangan sya ngaun ng 40 USD…Sa tingin mo mag iimport pa sya? So anong mangyayari sa export industry ng pinas? eh di gutom, tapos ano mangyayari sa ekonomiya ng pinas (kung saan isa kang palamunin na citizen) di gutom din…O sino ngaun ang magyayabang? ikaw? LOL!

      • kimo211

        Bro,,,salamat  sa  ECO 101  lecture   mo,,,,pero  paumanhin  lang,,,hindi  mo  ako  kilala  at,,,wala  kang  karapatan  na  manghusga  nang  kapwa  tao   mo,,,at  hindi  mo  pinalamon  ako   at  mga   ancestor  ko,,,,maraming  kaming  pinakain  at  binigyan  na  hanapbuhay  sa  Pinas,,,i  still  remember  nang  2  to  1  pa  ang  peso  /  u.s. dolllar,,,ay  maganda  ang  export/import  business nang  family   namin,,,wala   akong  masasabi  sa katalinuhan  mo …hindi  kita  kilala,,,comments  lang   ang  ibinibigay  ko,,at  wala  akong   tinatapakan  na  tao,,,hindi  ko alam  ang  katayuan  mo  sa  buhay,,,,,,,at  kung  alam  ko  man  ay  hindi ugali  nang  family  namin  ang  manghusga  nang  kapwa  tao…..for   your  info…marami  pa  rin  diyan  sa  Pinas   ang  mga  binubuhay  nang  business  namin   at  nagbibigay  nang  scholarship  sa  mga  karapatdapat  na  mga  kabataang  kapilipinuhan…salamat   sa  time   mo…magandang  araw   sa  iyo.

  • oh_noh

    peso rise… peso falls… rise and fall, rise and fall!

    cheers to a strong economy – in paper!

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