Tuesday, September 25, 2007

So, where is the Peso going?

Much as, I wanted to believe that the Peso would hold 45 to the dollar, because it is best for the economy, for our OFWs, for our exporters,among other reasons; I am afraid it is going to get stronger than anticipated. This is because of the combination of the following events:

1. The ZTE scandal has subsided.
2. The US dollar will continue to weaken in the weeks and months ahead.
3. The Philippine economy, literally, is not so bad.It will pick up in the 4th Q.
4. The "ber" months is up, we all know the dollar flows when Christmas comes.


Take advantage now, while the Peso is still at 45 something. Hay...I hope a stronger peso would translate to lower prices or at least 0 inflation, so our people would benefit out of this.

On the news (PDI):

MANILA, Philippines - American Express bank sees the peso surging to as high as 42:$1 in the next three months on the country's improved macroeconomic fundamentals and reduced global investor aversion to emerging markets.