Thursday, October 18, 2007

So, where is the Peso now?

News from the PDI: " The peso Thursday resumed its climb toward the crucial 44-per-dollar barrier as news of the government’s smaller-than-expected budget deficit in September and the resurgence of cash remittances from overseas Filipinos overwhelmed region-wide jitters over India’s plan to curb inflows of foreign portfolio investments.

The peso opened trading Thursday at 44.15 to the dollar and hit a low of 44.20 before closing at the day’s peak of 44.05 to the dollar.

It was prevented from further rising by the heavy buying of dollars by the central bank, dealers said."

It seems the Central Bank is trying hard to control the further ascent of the Peso. The question is, until when can they do it?