With the decrease in oil prices, the peso appreciated its strongest in nearly two months. This good news made share prices at the Philippine Stock Exchange rose to their highest level in two months as investors cheered Wall Street's rise due to a US Federal Reserve decision to keep its key rate.
The peso opened at 44 against the US dollar and reached 44.80 in intraday trading before closing at 43.82.
The appreciation of the peso made the volume traded at the Philippine Dealing System to $1.22 billion from the previous day's $894.25 million. Some traders suspected that the Bangko Sentral ng Pilipinas (the Philippine central bank) engaged in heavy buying of US dollars to temper the peso's appreciation.
Even though the BSP was said to have intervened in Wednesday's trade, the peso still gained a hefty 30.5 centavos from Tuesday's finish of 44.125 against the US dollar. The currency thus traded at its strongest level since it touched 43.77 against the greenback on June 4.
According to Jonathan Ravelas of Banco de Oro Universal Bank, a possible breach of 43.80 in the next few days will mean that the local currency may further rally to 43.50 and even test 43:$1.
The peso has lost 6 percent this year, a big turnaround from its pole position in Asia in 2007 when it gained 19 percent.
With this good news , i hope the peso will continue to appreciate so that our economy of country will be healthy again.
6 comments:
this means that our economy is improving so we must take advantage of what is happening now. by this event our loans in dollars will be lesser.
I hope that this good news can help the country get back from its recent losses. Oil prices went up and the value of the peso went crashing down. I really hope we can use this to recover.
that's good. that means our economy is slowly rising, or every one else is falling faster than we currently are. haha..
The economy is having a great boom with the peso rising, or appreciating, this also means that the government is doing a good job controlling our expenses and revenues for the country
No, the strengthening peso does not guarantee of a good economic basis.
Remember that this strengthening loses value of exported goods and decreases revenues as well.
Ironically, the strong peso is bad news for OFW's, domestic helpers, and foreign investors. Since the dollar-peso exchange rate strengthens, then the value of the dollar will be less than its value when the dollar-peso weakens.
This is good. May global oil prices continue to decrease so that the peso may continue to gain strength, together with our economy. This will be beneficial not only for the Philippines but for all nations. When oil prices depreciate, it is better for the global economy. It is also better for the people, especially for those in poverty. :)
Post a Comment