Quantcast
Latest Stories

Peso expected to stay at 41:$1 level in 1st half

By

The peso is expected to stay in the 41-to-a-dollar territory throughout the first semester as the government tries to curb the currency’s appreciation resulting from robust foreign exchange inflows.

In the April issue of “The Market Call,” a joint publication of First Metro Investment Corp. and University of Asia and the Pacific (UA&P), the peso is projected to average at 41.08 against the US dollar in May and may weaken to 41.46 in June.

Earlier this year, the peso stood at the 40-to-a-dollar level but fell to the 41 territory in April as the Bangko Sentral ng Pilipinas and the Department of Finance initiated measures to temper the effects of foreign exchange inflows.

In particular, the BSP has cut the interest rate on special deposit accounts (SDAs) by a total of 150 basis points since the start of the year, bringing it to a record low of 2 percent.

Investors consider SDAs to be highly attractive investment instruments. Monetary officials believe that foreign funds are being invested in SDAs even though the deposit facility caters only to domestic fund owners.

Also, the Finance department announced that it had abandoned its foreign and commercial borrowing plan for the year.

In settling the government’s maturing obligations denominated in foreign currencies, the government will simply borrow from the domestic market and use the proceeds to buy dollars from the BSP, the DOF said.

The move is expected to temper the peso’s appreciation, resulting from the inflow of foreign exchange.

Also, efforts of the government to boost its infrastructure development program are expected to increase demand for imported materials, according to the Market Call report. Higher imports, in turn, will fuel demand for dollars and dampen the peso’s rise.

“The planned infrastructure development will incur dollar demand and help soften the peso,” The Market Call report said.

Moves to counter the peso’s appreciation came about after the currency rose significantly in 2012, becoming one of the fastest-rising currencies against the US dollar. The peso rose by nearly 7 percent in 2012. At the close of the year, it hit 41.05 against the greenback.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: currencies , forecasts , Peso , Philippines

  • tea tinio

    kung mangyayari na 20pesos per dollar, please do it so. siguro naman mangangalahati bill ko sa kuryente, tubig, pati presyo ng lahat ng bilihin. besides, wala nang wage hike na kelangan dahil nagkahalaga na pera natin.



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • Tagle: Christ’s resurrection a message of hope to faithful
  • Aquino vows to intensify anti-corruption drive further
  • Unease in Vatican over cardinal’s luxury flat—report
  • Nepal calls off search for missing guides on Everest—official
  • Pope’s Easter Message ‘Urbi et Orbi’
  • Sports

  • Rain or Shine grabs No.4, sends Ginebra to 8th
  • Red-hot Alaska rips injury-depleted San Mig Coffee
  • Pacquiao courtesy call to Aquino set for Monday
  • Nick Calathes suspension a reminder of supplement risk
  • Teague scores 28 as Hawks soar past Pacers in Game 1
  • Lifestyle

  • Angono petroglyphs in danger of disappearing
  • Britain’s baby Prince George visits Australian zoo
  • Noli Yamsuan, Cardinal Sin’s ‘official’ photographer: ‘I could smell the aftershave lotion of the Pope’
  • Simplifying and lightening life
  • Where to go for Easter night-out
  • Entertainment

  • Show-biz celebrities’ other choices of summer getaway
  • Why ‘Noah’ can’t dock his ark at Philippine theaters
  • Acclaimed artist goes wild while on holiday
  • Believing in this mermaid
  • Missing Xian
  • Business

  • Top-selling insurance agent opens her dream café
  • Connecting and transacting with one another
  • Building wealth for health
  • Why Mandaue Foam buys, rather than rents, space
  • A workplace of new possibilities
  • Technology

  • Nasa’s moon-orbiting robot crashes down
  • Netizens pay respects to Gabriel Garcia Marquez
  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Opinion

  • Epiphany
  • Unpaid creditor vs distressed debtor
  • Moving on
  • From culinary desert to paradise
  • Response to China: ‘Usjaphil’
  • Global Nation

  • Tim Tebow’s charity hospital in Davao seen to open in 7 months
  • OFW died of Mers-CoV in Saudi Arabia, says family
  • Aquino, Obama to tackle US pivot to Asia during state visit
  • Asia seeks Obama’s assurance in territorial spats
  • Cesar Chavez movie sparks memories of Fil-Am labor leaders
  • Marketplace