The Philippine peso: Strongest currency in Asia! GOOD NEWS

[grabehbebe]

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Peso regains lost ground

The peso climbed yesterday on speculation overseas investors will buy the country’s stocks and bonds as investors return to riskier assets.

At the Philippine Dealing System (PDS), the peso gained by a substantial 19 centavos to close at 52.59 from Monday’s close of 52.78 to the dollar.

The currency has strengthened since Finance Secretary Margarito Teves said it would advance if the country’s economy improves, helping reduce its debt payments.

The peso touched the lowest since January on May 24 as investors sold shares for a second week on concern global growth will slow and damp demand for the nation’s exports.

"People are going to be getting back into stocks and that’s going to be a positive for the currency,’’ said Marcelo Ayes, first vice president for treasury in Manila at Equitable PCI Bank. " There’s still sustained growth in the economy, so sentiment is good."


News at: http://www.philstar.com/philstar/news200605310701.htm

[baron]

Contrary to what others suggested that the peso is free falling, the peso is regaining control to its stable ground. Hopefully, the stability we have will not be hindered by those political noises that the opposition is crying out loud.

[rONi]

still 52.78...........stable

[Sovabon]

Haayy, pila nasad kaha ugma ang peso vs dollar?

[Rance]

check the business section

[eelssej_]

As of June 05, 2006 12:55 PM

P52.701 = USD1.00

[Rance]

Inflation slows to 6.9% with strong peso :mrgreen:
Posted: 2:11 AM | Jun. 07, 2006
Michelle V. Remo
Inquirer
http://money.inq7.net/topstories/vie...6&dd=07&file=1

INFLATION eased further to 6.9 percent year-on-year in May, the lowest in four months, as a strengthened peso helped temper the effects of the increased value-added tax on prices of consumer products, an official said Tuesday.

The inflation rate, which the National Economic and Development Authority (NEDA) had forecast at 7.0-7.3 percent, decelerated from 7.1 percent in April and 7.6 percent in February and March, and from 8.5 percent in May 2005.

It brought the January-May average to 7.2 percent.

"This is better than our expectations," said Dennis Arroyo, NEDA director for policy and planning. "This will help us meet, if not surpass, our inflation target for the full year of 7.3 to 7.9 percent

The National Statistics Office said prices of nearly all commodity groups showed slower increases in May than in previous months. Only clothing and services were the exception, it said.

The NSO said the inflation rate for the food, beverage and tobacco group was 5.9 percent in May, compared with 6.1 percent in April. Prices of housing and repair rose 4.0 percent, compared with 4.2 percent the month before. Fuel, light and water slackened to 13.4 percent from 15.9 percent, and miscellaneous items slowed to 3.1 percent from 3.3 percent.

Clothing and services accelerated to 3.2 percent and 11.1 percent, respectively, in May from 3.1 percent and 10.6 percent in April.

Core inflation, which does not include prices of food and energy, slowed down to 6.1 percent in May from 6.3 percent in April.

The slowdown in inflation came despite effects of the increase in the value-added tax (VAT) in February to 12 percent from 10 percent. The tax was expanded in November to include energy.

Arroyo said the appreciation of the peso was a major reason inflation fell below expectations despite the impact of the VAT on consumer prices.

He noted that the peso averaged 52.07 to the dollar in May, compared with 54.34 to the dollar a year earlier. With INQ7.net

[marke]

Peso drops to 53.25:$, stocks down


The peso slumped to a five-month low Thursday to breach the 53 mark as it closed at 53.25 against the US dollar from Wednesday’s 52.92 finish.

Bangko Sentral ng Pilipinas Gov. Amando Tetangco said the peso's fall was due to regional weakening given the broad strengthening of the US dollar. He added that the domestic dollar demand is pulling down the local currency.

The peso opened at 52.95:$ with transaction volume amounting to $526.5 million. The greenback was traded between P52.94 and P53.25.

Asian currencies weakened for the third straight day on Thursday amid a sell-off in regional stocks on growing expectations that the US Federal Reserve will raise interest rates this month for a 17th straight time.

[rONi]

Peso drops to 53.25:$, stocks down


The peso slumped to a five-month low Thursday to breach the 53 mark as it closed at 53.25 against the US dollar from Wednesday’s 52.92 finish.

Bangko Sentral ng Pilipinas Gov. Amando Tetangco said the peso's fall was due to regional weakening given the broad strengthening of the US dollar. He added that the domestic dollar demand is pulling down the local currency.

The peso opened at 52.95:$ with transaction volume amounting to $526.5 million. The greenback was traded between P52.94 and P53.25.

Asian currencies weakened for the third straight day on Thursday amid a sell-off in regional stocks on growing expectations that the US Federal Reserve will raise interest rates this month for a 17th straight time.

hay..mahal nasang panaliton

[grabehbebe]

RP economy sound despite weak peso


The peso depreciation is not an indication of weakening economic fundamentals, according to a paper published by the government think tank Philippine Institute for Development Studies.

In a paper titled “Exchange Rate,” Ma. Teresa Dueñas Caparas, supervising research specialist at the PIDS, said the movement of the peso against other currencies was “not analogous to comparing country performances.”

“The exchange rate as well as stock prices and Treasury bill rates are used as crude measures of performance but are highly influenced by perceptions and expectations, rather than fundamentals,” she said.

Caparas said that a weak peso was not necessarily good for the economy. “Case in point is China where the yuan is intentionally kept at a low level relative to the US dollar, yet its economy is considered to be a powerhouse,” she said.

She said whether a weak peso was good or bad for the economy was a controversial question that did not have a ready textbook answer.

“While important commodities like oil and heavy machineries are imported favoring a stronger peso, electronic and garment manufacturers, together with overseas contract workers, would vote for a depreciated peso,” she said.

“A number of Filipinos associate a stronger peso with the strength of the economy. While it is true that the peso carries the purchasing power of a consumer, it does not exactly translate to the overall performance of the Philippines,” she said.

Caparas defines exchange rate as the valuation of the local currency against another currency. In other words, exchange rates reflect the price of one currency in terms of another.

She said an appreciation of the peso made imported products cheaper in the Philippines while depreciation favored exporters and local producers with import substitutes since they could earn extra profit without adjusting production cost.

Caparas said exchange rates were determined by the demand and supply for foreign exchange from the households, firms, and financial institutions that buy and sell foreign currencies to make international payments. Roderick T. dela Cruz

http://www.manilastandardtoday.com/?...05_june14_2006