Asean currencies and Australian dollars are up. The Philippine peso now trades at 42 to the dollar, when in 2001 it used to be 56 to the dollar. The Australian dollar is now more than parity at 100.35 US cents.
What is the trend, where are the currencies going?
On the news: The Fed unveiled plans to buy $600 billion in government bonds to help the struggling economy. Markets had expected the Fed initially to commit to buying at least $500 billion in Treasuries over several months.
--------
Expect a movement upwards, expect more of the same. I fear that the Philippines peso will surge to 39 to the dollar in December when remittances will be traditionally high and the Feds money starts entering the financial system all over the world. More cheap imports for the Philippines I guess, and our exporters would be in pain. So are the OFWs who get less Peso for every dollar that they will send come December.
The Fed is printing more money as if there is lack of money in the system (US economy) which is not the case. I hope it wont lead to double digit inflation - which probably will not happen as most American are belt tightening. I hope it would lead to job creation.
--------
If you are an OFW, what can you do? If you have a dollar account, convert your dollars now to Peso while it is still at 42 something, I guess.
--------
GOPs are back in the US Congress. I hope it was not jumping from the pan to the fire...as one commenter in Yahoo noted - to which I agree. Lolz.
What is the trend, where are the currencies going?
On the news: The Fed unveiled plans to buy $600 billion in government bonds to help the struggling economy. Markets had expected the Fed initially to commit to buying at least $500 billion in Treasuries over several months.
--------
Expect a movement upwards, expect more of the same. I fear that the Philippines peso will surge to 39 to the dollar in December when remittances will be traditionally high and the Feds money starts entering the financial system all over the world. More cheap imports for the Philippines I guess, and our exporters would be in pain. So are the OFWs who get less Peso for every dollar that they will send come December.
The Fed is printing more money as if there is lack of money in the system (US economy) which is not the case. I hope it wont lead to double digit inflation - which probably will not happen as most American are belt tightening. I hope it would lead to job creation.
--------
If you are an OFW, what can you do? If you have a dollar account, convert your dollars now to Peso while it is still at 42 something, I guess.
--------
GOPs are back in the US Congress. I hope it was not jumping from the pan to the fire...as one commenter in Yahoo noted - to which I agree. Lolz.