Peso hits 41:$1, highest in 56 months

Dollar supply surges due to heavy Christmas inflow

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The peso closed at its highest level in 56 months against the dollar on Monday, Nov. 26, 2012, at its intraday high of 41 against the greenback.

The peso closed at its highest level in 56 months against the dollar on Monday on the back of rising remittances from overseas Filipinos and improved sentiment on the global economy following reports of rising consumer spending in the United States.

 

The local currency closed at its intraday high of 41 against the greenback, up from 41.05 on Friday. The last time the peso closed stronger than this rate was on March 7, 2008, when it hit 40.85 against the dollar.

 

The intraday low settled at 41.025:$1. Volume of trade amounted to $655.09 million, down from $733.7 million last Friday.

 

Jonathan Ravelas, market strategist for Banco de Oro, said the growing remittances due to the coming Christmas holidays helped boost the value of the peso against the dollar.

 

Ravelas said expectations that the Philippine economy would post another favorable growth in the third quarter (official growth figures will be announced Tuesday) after expanding by 6.1 percent in the first semester boosted the appetite for peso-denominated securities.

 

He added that reports on the impending merger between Bank of the Philippine Islands (BPI) and Philippine National Bank (PNB) led to a favorable outlook on the domestic banking sector and boosted the appetite for publicly listed stocks in the country.

 

“There has been renewed interest [among portfolio investors] in the banking sector. The story of consolidation in the banking industry and optimism on the economic growth performance in the third quarter aided in higher purchases of stocks,” Ravelas told the Inquirer.

 

Other market players said the rise of the peso, which came with the appreciation of other Asian currencies, came following favorable reports on consumer spending in the United States. Traders said an increase in consumption in the world’s biggest economy has a positive impact on export earnings of countries like the Philippines.

 

According to a report from a group of US retailers, Americans spent 13 percent more during the last four-day Thanksgiving weekend compared with that in the same period last year.

 

The Bangko Sentral ng Pilipinas had said that it would continue keeping an exchange rate policy that provided for the exchange rate to be largely market-determined, but allowed the BSP to intervene to prevent a sharp and sudden rise or fall of the peso.

 

The BSP said the extreme volatility of the exchange rate would be bad for businesses and the economy.

 

Market players said that were it not for the central bank’s dollar-buying in the market, the peso could have appreciated at a much faster rate.

 

BSP Assistant Governor Ma. Cyd Tuaño-Amador also said that the BSP would allow the peso to appreciate if such movement would be fueled largely by foreign direct investments. However, she said the BSP would exercise its flexibility to intervene in the market if the appreciation pressure would come from speculative investments.

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  • http://pulse.yahoo.com/_NIPR2MWOPGWUNZ4COTAMW7MLKE Mark

    sige Piso taas pa… as of 11/26/2012  — 40.85 na to the green buck. Panalo ang mga Dollar Speculators

    • Wearth

      kawawa naman ako, dollar kasi sahod ko, hays

  • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

    Whew, we are one of the currency manipulators in the world, since we are manipulating our currency, why not manipulate for its appreciation against the green back? Let it loose if it appreciate sharply, how bad is it anyway for the economy?

    • http://www.facebook.com/profile.php?id=100003712489179 Michelle Martin

      wrong. BSP is implementing a free market approach in currency exchanges. Hindi tayo tulad ng China na binababaan ang value. Kung minamanipulate ang currency bakit naman nila pababayaan na mag-appreciate ang peso? boblacks ka!

  • help_our_country

    There are advantages and disadvantages to what level of exhange rate of peso vs.usd should be.The BSP already knows that.It is better to have an influx of FDI  than speculative investments thru stock market.
    The aprreciation of peso favors only to those OFW & exporters but not to those who work & live in the Phils.
    Give and take should be.

    • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

      hello, appreciate against other currencies means lower exchange rate, if the peso depreciates, then the exchange rate will be higher and good only for the OFW’s but bad for our economy…..

  • http://profiles.google.com/odredd Dredd Ofalexandria

    Malakas nga ang peso eh tumataas naman ang bilihin kasi Christmas season. Wala rin effect yan sa mga ordinaryong mamamayan. Pero sa mga importer na negosyante malaki kita nila.

  • Iggy Ramirez

    Son of a b1tch!

    Mas OK pa nung si Gloria ang presidente mas malaki ang palitan.

    • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

      di baleng mas malaki palit sa dollar mo, kesa naman umangat ekonomiya natin at mag appreciate ang peso natin noh, ok din ang pananaw mo… siguro gusto mong mangamuhan habam buhay sa ibang bansa no…mas maganda at masaya dine sa Pinas…

    • GustoKoHappyKa

      weh..sigurado ka ba? mas mabuti nga yan.

    • http://www.facebook.com/profile.php?id=100003712489179 Michelle Martin

      bo bo magwheel chair ka na sabayan mo amo mo sa kulungan! peste!

  • ramelatilano

    HA HA HA INGGIT LANG KAYO..NOONG NASA PWESTO KAYO DI NYO GINAWA ANG MAAYOS HA HA HA

  • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

    Expect the cost of electricity to increase and everything else as a consequence. Remember that MERALCO loans are YEN DENOMINATED!!! So who is benefiting from the peso appreciation? ONLY THE OIL COMPANIES , the UTILITY companies, the IMPORTERS … the POOR FILIPINOS HAVE TO PAY MORE!!!

    This is the ECONOMICS OF THE CORRUPT … or CORRUPTED ECONOMICS!!!

    • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

      mga importers lang makikinabang, pero sa mga normal lang na pinoys, wa epek kasi presyo ng bilihin walang rool back, ke bumaba pa ang presyo ng langis, bumaba ba ang presyo ng mga bilihin? wla, kaya tama ka kabayan…

    • Wearth

      malamang maraming magsasarang US company na naka based dito sa pinas pag naging P38 ang palitan ng dollar, lilipat ang callcenter sa india at mga offshoring company.

      Pres. Obama ayusin mo naman ang US economy, itigil na ang gyera at mag focus sa economy ng US. :(

  • Pitbulldog

    This is good news for whom?  BS Aquino?  Another BS.  We were more than happy before when dollar was at 50 pesos and yet we can buy more out of our 1 peso than it can now.  That’s economics for you ABNOY…..

    • http://www.facebook.com/profile.php?id=100003712489179 Michelle Martin

      sige pa. ano na napala mo? inggit ka na ngayon hahaha wala na talaga maga ang mga pathetic na tulad mo. sumakay ka na sa wheel chair ni Gloria at magsama kayo sa kulungan!

      • Pitbulldog

        Masaya ka, Michelle Mabelle. Are you a he or a she? Sa French, lalaki yan. Sa P-noy, either babae o ka-federacion ni P-noy. Ikaw naman yata yumayaman ngayon a, as in ka-KKK ka ni P-noy kaya kayo naman namamayagpag ano?

  • raymond

    a bleak christmas for the families of ofws…

    • lucidlynx

      are you nuts? a higher peso means it has stronger purchasing power. it is not about just exchanging your dollars for fewer pesos but on how much your peso can buy for you.

      a strong peso is always good because imports will be cheaper and generally the cost of goods should be cheaper as well. only that our exports will be more expensive in the international market.

      mag-aral ka muna ng economics bago ka mag-comment.

      • raymond

        hindi ka ofw pre…wag ka magmayabang sa nalalaman mo…

      • http://profile.yahoo.com/2PRMWTPYYZZT3M36WBNOPGINHQ gbeth

        i too share people’s sentiments here. i dont want the peso to appreciate. ang mahal pa rin ng bilhin at pagkain, tapos yung serving pa sa pagkain parang appetizer na, ang liliit!

      • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

        Presyo ng ano ang bumaba dahil , sabi mo, lumakas ang purchasing power ng peso?

      • malek_abdul

        Kung taga saan ka mang lupalop…Go home…you’re drunk!!! Hindi mo alam ang pinagsasabi mo. Hindi kailangang mag-aral ng economics para malaman at maramdaman mo ang katotohanan. The abrupt appreciation of the peso is doing more harm than good especially to the ordinary Filipinos.

      • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

        Imports will be cheaper but retail would be still the same.. very expensive…kahit tumaas ang purchasing power ng peso, pagdating ng imported goods sa atin, sa mga basic needs natin, ganon pa rin.. di naman bumaba ang presyo ng mga pangunahing bilihin… export, dahil tumaas ang value ng peso, mas mababa ang frieght charges at custom duties na babayaran ng exporter.. so yong export natin, puwedeng maibenta ng competitive price…pero kung malaki ang binayaran mo sa pag eexport mo, syempre malaki rin ang patong mo para makabawi ka…pero malamang sa sobrang mahal, lalangawin lang he he he

      • Wearth

        dre naiintindihan mo ba post mo? noong P55 to $1 ba dati, bumaba ba presyo ng bilihin natin? tapos hanggang ngayon bumaba ba bilihin at gastusin ng pinoy?
        HINDI, kahit mag P30 is $1 yan, walang epekto sa mamayang pilipino, kung itataas nila ang sahod natin at ibaba presyo ng bilihin (magtapyas ng 5-10 piso sa lahat ng bilihin) malamang ok yan, pero sa ngayon walang silbi yan at problema lang sa OFW at mga off-shoring company (kagaya ng callcenter)

  • NoWorryBHappy

    Joskoh !
    Palapit na palapit na matupad ang pangarap ko.
    Sana ay buhay pa ako kapag ang palitan na ay PhP1=US$41.
    Kaya natin ito mga kababayan.

    • lucidlynx

      mahirap bumaligtad yan. maybe the best we can hope for is PHP38 to USD1 at least in PNoy’s term. hindi rin masyadong maganda na biglang lakas ang peso kasi maapektuhan ang exports natin. our exports will become more expensive.

      kaya nga ang Japanese Yen is sobrang baba sa US dollar kasi para maka-compete ang exports nila. kaya lang iba ang Japan. ang exports nila ay high tech products like computers, electronics, automobiles, etc. habang ang Pilipinas is more on agricultural exports and business services.

      • http://profile.yahoo.com/AND7MQ5FERICDOIAUW56RYT45A tower_of_power

        Look at it this way … JAPAN is a NET exporter … good for them for their money to be lower … but for PINAS is the other way around!!! Nag iimport nga tayo ng bawang … bigas … we are a big importer of meat and poultry products … etc …ano sabi mo na exporter tayo ng agricultural products?
        EXPORTER TAYO… NG MANPOWER >>> ANO EFFECT NIYAN  SA KANILA?

    • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

      mag dilang anghel ka na nawa NoWorryBHappy, Godspeed!!!

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