Wednesday, May 21, 2008

Peso tumbles to 43.24

There...I said TP your trade once it reach 43.5. It is almost there now, maybe later today or tommorow.

IMO, I will get out. Wait....and wait for a developing trend again before going in again. School is coming up (June) so a flood of US dollars are expected. Better be careful than sorry.

On the news today:

The peso tumbled Wednesday to a six-month low of 43.24 against the dollar as corporations loaded up on foreign exchange stock to hedge against skyrocketing global oil prices.

The Bangko Sentral ng Pilipinas (the Philippine central bank) was widely believed to be sporadically selling dollars at the spot foreign exchange market to temper the peso's fall, but demand was just too big as some corporations panicked when the 43:$1 psychological barrier was breached, some currency dealers said.

The local currency opened at its intra-day high of 43.05 and closed near the low of 43.25 to a dollar. It lost another 24 centavos against the greenback from Tuesday's finish of 43.


This is all for now.