Dollar Loses 1 Peso in 2 Days
I haven’t seen anything to suggest to me what the cause of a one day decline of more than a P1. I checked the dollar against the British Pound and EU and it was down there too. It was up against the Yen. The US dollar seemed to be downward trend to the Yen in recent weeks.
- Close 12-08-08: 49.1???? (From memory)
- Close 12-09-08: 48.661800121048
- Close 12-10-08 P48.1928231588 per one American dollar.
I don’t know what caused this. I did read an article earlier this month warning that the dollar often falls in the month of December as investors sell off at the end of the year. Yesterday, news that an agreement on the GM 
bailout had been achieved. That bailout would have meant additional debt to the US Government which could influence the markets to value the dollar lower. If that is the cause, we may see that loss go right back up. The deal hit a road block in the Senate and it may be dead. I doubt that fifteen billion would have that big of an impact on the markets. When we are already talking about one trillion dollars and seven hundred billion what’s another fifteen billion? Doesn’t seem like enough to cause the kind of one day drop we’ve just seen. I will continue to keep my eyes open for what might have caused this steep one day decline of the dollar.
Tagged with: Expat Finances • Living In The Phlippines • Philippine Peso
Filed under: Expat Finances
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I closed my bank account. Sorry I’ll reopen it.
tom’s last blog post..Shopping: What Can you Buy
Hi Rusty – I believe that there are two things pushing the Peso up right now:
1. The BSP (Bangko Sentral ng Pilipinas) is strongly defending the Peso right now. They do this by selling dollars and buying pesos.
2. OFW’s (Overseas Filipino Workers) send home extra money for Christmas. This does two things. Firstly, the OFW families are selling their dollars to money changers, pushing the dollar down, and those dollars eventually end up at the BSP, and are then re-used to buy more pesos.
Next month, things will settle down, I think. I also think that we will be above P50:$1 when things settle.
I was trying to post something similar to what Bob said but it wouldn’t let me post. It was some kind of error code.
The currencies always tend to float up and down some. It isn’t unusual for the peso to dip near the beginning of the month because of the remitances. December will be bigger because more are being sent. (Yeah what Bob said)
Looks like you managed to post it, I broke the link structure for a few hours. I had a typo. Maybe that as it. Things would post but I’d get an error message.
The dollar is falling against all currencies right now. Or it was, that may stop since the senate refused to bail out the automakers.
The dollar usually falls in December due to money managers closing out position to take advantage of any losses (for tax purposes) they may have. Or to lock in gains for their financial statements.
Thanks for the heads up on that that bank Bob. I’ve downloaded averages for the last ten years. One of these days, I’ll put it in a spreadsheet and take a hard look and share things.
Times are volatile. Things could go badly quickly. I say badly because i need the dollar at 1:48 of I have a hard time getting through the month.
WOW, I just saw on CNN that there is a a tropical storm or typhoon headed our way but now they think it will turn north. I hope so. I was getting email alerts but I think they site stopped doing that.
The dollar is back up a bit.
Close 48.110 on 12/12/08
Bob, do you know how, can you explain how the money changers are able to give better rates than banks? Are they dealing in futures?
Hi Rusty – I don’t know for sure, but I think that they are speculating that the dollar will strengthen, and are thus giving a little better rate.
Hmm, I suppose when the exchange was at 1:39 that was a pretty safe bet. At 1:55, seems like they wouldn’t want to trade any more.