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Peso falls as excitement over investment grade rating eases



MANILA, Philippines—The peso fell on the first trading day after the Lenten break as the euphoria over the Philippines’ attainment of an investment grade eased.

The local currency closed at its intraday low of 40.84 against the US dollar on Monday, down by 4 centavos from the finish of 40.80:$1 on March 27.

Intraday high hit 40.75:$1. Volume of trade reached $530.4 million from $1.14 billion previously.

Traders said the volume of trade eased and demand for the peso tempered as the foreign exchange market felt downbeat following the Lenten break.

Last Wednesday, the last trading day before the break, the market was lifted by the announcement that Fitch Ratings gave the Philippines its first investment grade from a major international ratings firm.

Traders said fund owners would look for fresh leads in the coming days to guide their investment decisions.

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Tags: Business , business and finance , currencies , economy , fitch ratings , Foreign Exchange , Philippine peso , US dollar

  • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

    Yey! I hope it does not appreciate anymore because it is going to be disadvantageous to our exports and remittances. :D

  • rodben

    Time of Erap Peso to Dollar 50.00p lowest price of rice/kg = 16.00p…now Peso to Dollar 40.00p lowest price of rice/kg = 35.00p…Masarap mamuhay sa ibang bansa mura bilihin malaki sweldo…

  • upupperclassman

    My friend in PSE told me the Fitch rating was requested and paid for by Philippine Government. Is this true?

    • http://www.facebook.com/people/Nimrod-Suaez/100000690243919 Nimrod Suaez

      More likely by foreign fund managers….. such upgrades energizes temporary foreign investments in the stock market….. such investments will be pulled-out…..once the index reaches a predisposed target…..

      • upupperclassman

        I hope not. The market was down Monday with a huge volume of P20B and the market is down again Tuesday. Bad omen ha!

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        Depends on the investor. Some see is as a good sign – a time to buy “on sale”

    • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

      No one can request anything from Fitch. Fitch based their upgrade from strong macro fundamentals of the Philippines. I dont believe who you a friend in PSE because you’re living in a basement.

      • upupperclassman

        Remember those CDO and CDM that caused the the last financial crisis, they were given triple A rating by the 3 rating agencies because those ratings were paid for. Safer to live in basement than on clouds.

  • JasonBieber

    That Fitch grading is much thanks to the former President Gloria Macapagal-Arroyo and the things she initiated and instituted while she was in office. And that’s according to Fitch…they are the ones that said their reason for upgrading the PH was because of the improvement of fiscal management done by GMA.

    • http://www.facebook.com/profile.php?id=1711094250 Winzum Daoas

      Yes, Fiscal management was thanks to GMA. But the reforms undertaken by the current administration such as the zero-based budgeting, greater transparency and more open competition that pushed for it. If you note, through the nine years of Arroyo, she has increased the Philippine fiscal resources but was unable to institute reforms and gain international credibility to warrant an investment grade. So this is in a very small part because of the Arroyo administration and mostly thanks to the reforms and the image projected by the Aquino III administration.

      • JasonBieber

        PNoy has only been in office for under 3 years…for FITCH to single out Arroyo even when she hasn’t been in office for these last years greatly shows that she has a major impact on this upgrading.

        And for you to say that it is in large part because of PNoy and his greater transparency is not accurate. Need you be reminded that his Administration does not seem to support the FOI bill and has not done much to make sure it is passed.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        Arroyo had ten years to get rating upgrades. all she got were rating downgrades.

        That Aquino has gotten it in 3 years or less is an a validation of Arroyo’s work. It’s an indictment of her corruption and plundering.

      • JasonBieber

        Before you spew negative comments maybe you should take a look at what FITCH said.

        FITCH basically said they upgraded because of what GMA did with fiscal management. The only thing they mentioned about PNoy is that he is just continuing it what she started.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        I think you’re already twisting the report’s words. GMA was a one liner. She didn’t get as much credit as you are crowing about.

      • JasonBieber

        One-liner? Her name was in one-line maybe but what the report stated basically was referring to what she did and what PNoy is what they are assuming is continuing.

      • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

        And yet for 8 years there was no upgrade during Arroyo’s term. In fact the country got degraded during her term. LOL

      • JasonBieber

        The country did not get degraded. Don’t make up stuff. If you know anything about economics then you would know that the Philippines was not in good shape when GMA took office. And it takes time to fix the economy which GMA did and now PNoy is enjoying all of GMA’s hard work and he is taking credit for it even though he hasn’t really contributed to it.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        But there were ratings downgrades. So maybe you’re the one making stuff up?

      • JasonBieber

        Just read what FITCH stated referring to GMA. Unless you will argue that FITCH Ratings is making stuff up too? Bottom line this first ever investment grade, according to FITCH, is based off of the fiscal management started by GMA.

    • http://www.facebook.com/people/Nimrod-Suaez/100000690243919 Nimrod Suaez

      Right on target!!!!…..

    • http://www.facebook.com/crisprejillana.hufalar Cris Prejillana Hufalar

      yes naman, Fitch is not bulag.

      • JasonBieber

        Funny thing is that it was the PNoy Administration that was hounding for the upgrade from FITCH probably to use it for election purposes but the ironic thing is that they singled out GMA as a main reason why they gave the Philippines’ its first ever investment grade.

      • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

        Fitch does not care about elections in the Philippines.

      • JasonBieber

        Yes but the PNoy administration cares about it a lot which is why they’ve been hounding FITCH for this investment grade. It’s just they didn’t expect that FITCH would give it then credit GMA for their reason for upgrading.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        Fixed it for you:

        Yes but the PNoy administration cares about it a lot which is why they’ve
        been hounding FITCH for this investment grade. It’s just they didn’t
        expect that JasonBieber would credit GMA for the upgrade.

        SuperJasonBieber to the rescue! :D

        balato naman jan, mukhang malaki bayad sayo ni GMA :D

    • http://www.facebook.com/profile.php?id=100003516764413 Jean Claude

      baliw. kung kay Gloria pala eh bakit hindi nila inupgrade yung credit rating nung term niya? hahaha wala kang logic

      • JasonBieber

        Learn economics before you comment on economic matters. Turning the economy around is not an overnight thing. It was a poor economy that GMA inherited and she did thing that allowed for this upgrade today or else FITCH would have not said anything and would not had commended her. But the point is they did. FITCH said they upgraded the Philippines because of what GMA instilled in terms of fiscal management.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        Started is different from instilled. She put into law taxes, then plundered the bigger money that came in. You can give credit for stating it, as the laws were signed. You can’t give her credit for instilling, but you can give her credit for stealing ;)

      • JasonBieber

        Don’t hate for the sake of hating. You keep finding reasons not to give credit where credit is due. If she did nothing then FITCH would not have commended the work she did but the point it they did commend GMA so just deal with it and accept it.

      • http://www.facebook.com/profile.php?id=100004687094093 Facebook User

        I think you got it backwards. You’re the one hating for the sake of hating. Giving credit for increasing her plundered loot? you’re real life initials are probably FG or GMa…

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