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GREED IS GOOD! : Currencies

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  • DAILODAILO Member PExer
    US DOLLAR RATES

    Ph Peso 43.965

    Yen 107.37

    HK Dollar 7.7957

    Indonesia Rupiah 9,260

    Thailand Baht 39.685

    SG Dollar 1.7359

    1 TW Dollar 30.841

    Korea Won 1,119

    1 Malaysian Ringgit 3.7997

    Euro 1.0539

    UK Pound 0.6605

    As of 1:46 AM GMT


  • DAILODAILO Member PExer
    RP peso heals slightly in early range-bound trade

    Manila, July 10 -- The Philippine peso (PHP) recovered marginally in early range-bound trade Monday against the U.S. dollar after slumping to near 22-month lows last week, in step with a firmer Indonesian rupiah, traders said.

    The dollar/peso was bid at PHP44.010 in Asian deals after closing at a near 22-month peak of PHP44.030 in local trading Friday.

    "It's a minor correction along with the rupiah but it's nothing great," said a trader from a U.K. bank, adding the peso's firmness may be short-lived owing to the generally bearish sentiment still pervading the market.

    The rupiah was firmer against the U.S. dollar after opening around 9,300 to the dollar in early Monday trade in Jakarta as investors unloaded their long dollar positions. The dollar/rupiah was bid at 9,271 compared with 9,275 late Friday.

    A trader with a U.S. bank said corporate demand for the greenback is starting to swell at the 43.980 level, thus establishing an immediate ceiling to the peso's recovery.

    The pair opened at 44.020 but shortly crossed the critical 44.000 support to hit an early low of 43.980.

    The central bank is out of the currency market, dealers said, giving players enough incentive to bid up the greenback freely in case the domestic front goes awry or regional sentiment sours anew.

    Apart from the influence of softer currencies in the region, confidence in the local currency has waned due to the unsteady political situation in the country, led by the long-running Muslim insurgency conflict in the southern Mindanao region where several foreign hostages also remain captive by rebels for two and a half months now.

    Central bank Governor Rafael Buenaventura maintains there is no need to intervene and prop up the local unit, confident the peso will soon see better days.

    But a local dealer said the dollar/peso may be caught in range-bound trade for the rest of the session as banks pause to consolidate their positions. Volume traded at the Philippine Dealing System reached a measly U.S. $27.5 million.

    Traders said the pair will likely be encased within the 43.950-44.050 band for Monday's trading. -- Bridge News


  • DAILODAILO Member PExer
    US DOLLAR RATES

    Ph Peso 44.240

    Yen 106.67

    HK Dollar 7.7957

    Indonesia Rupiah 9,280

    Thailand Baht 39.760

    SG Dollar 1.7368

    1 TW Dollar 30.839

    Korea Won 1,117.3

    1 Malaysian Ringgit 3.7997

    Euro 1.0499

    UK Pound 0.6588

    As of 7:14 AM GMT

  • green gringreen grin Member PExer
    waaaahhhhhhhh!!!!!! ang baba ng peso!!!!! crying.gif
  • DAILODAILO Member PExer
    RP central bank says it won't touch rates despite peso fall


    Manila -- Philippine central bank Governor Rafael Buenaventura said yesterday the Philippine peso's (PHP) continued slump against the U.S. dollar is in "knee-jerk" reaction to the steady Treasury bill rates at the auction earlier Monday.

    He said the central bank does not have any immediate plans to adjust its key overnight interest rates to give players incentive to flock back to the local currency.

    "It's a knee-jerk reaction (to the T-bill results). The shorter end of the market is still competitive at about 9%," Buenaventura told BridgeNews by phone.

    The peso fell to a day-low of 44.310 in local afternoon deals Monday, its fresh low in almost 22 months after closing at 44.030 on Friday.

    The 91-day T-bill average rate was flat at 8.890% at the auction Monday with the government junking all bids for the longer term 182-day and 364-day T-bills in a bid to prevent a sharp rise in domestic interest rates. The Bureau of Treasury awarded only PHP600 million (U.S. $13.6 million) of its total PHP4-billion volume offered.

    Asked if he is worried about the peso's constant decline, Buenaventura said: "No. That's (the) market."

    He also maintained that the monetary authority is not intervening to rescue the local currency.

    The central bank kept its overnight borrowing rate steady this week for the third straight week after adopting a three-tiered scheme on June 26 where it effectively cut its overnight borrowing rate to as low as 7% from a fixed rate of 10%.

    As such, the central bank pays 10% for the first PHP5 billion placed overnight, 8.5% for the next PHP5 billion and 7% for funds in excess of PHP10 billion.

    The overnight lending rate has been pegged at 12.25% for eight weeks now. -- Juliana Dancel, BridgeNews
  • DAILODAILO Member PExer
    US DOLLAR RATES

    Ph Peso 44.675

    Yen 107.03

    HK Dollar 7.7958

    Indonesia Rupiah 9,310

    Thailand Baht 39.935

    SG Dollar 1.7404

    1 TW Dollar 30.835

    Korea Won 1,116.4

    1 Malaysian Ringgit 3.7997

    Euro 1.0478

    UK Pound 0.6602

    As of 1:45 AM GMT

  • DAILODAILO Member PExer
    GOOD MORNING PEEPS!

    Good luck on all your Trades!

    GREED IS GOOD! :D:D:D
  • DAILODAILO Member PExer
    RP gov’t looks at 25-year bonds as borrowing option

    Manila -- The Philippine government is considering issuing $300-million worth of either long-term floating rate notes or syndicated loans in the domestic market in order to raise money to close its budget gap.

    Philippine central bank governor Rafael Buenaventura said the government has at least three options to raise about $300 million and complete its programmed borrowings for this year.

    "We have three options. There is the Euro bond market, the FCDU market, and there is also the possibility we could issue floating rate notes or syndicated loans locally," said Buenaventura.

    There have been market talks that the Department of Finance is seriously considering raising three to five billion Philippine pesos (PHP) from the domestic market by issuing 25-year bond instruments.

    Sources said the offer came from a large foreign bank that proposed to underwrite the offering. The bank proposed to offer PHP10-PHP12 billion in the long-term bond market. The subscription to the instrument would constitute compliance to the agri-agra law for banks.

    "Rather than borrow abroad and pay the same rates, we should just opt to raise our long-dated rates. Borrowing locally would not crowd out the private sector," said Buenaventura.

    Buenaventura said the International Monetary Fund would not object to the medium-term floating rate notes. The Fund earlier objected to the government's move to borrow locally on a short-term basis.

    Buenaventura also proposed to the government to allow the increase of interest rates of debt instruments maturing five years and up in order to prevent investments from shifting to foreign currencies. This move is also aimed at helping strengthen the peso.

    The proposal has placed the central bank at odds with the Bureau of Treasury which has been trying to keep local interest rates, both short and long-term, modest and stable.
  • DAILODAILO Member PExer
    Philippine Treasurer expects rates at T-bill auction to be steady


    MANILA (AFX-ASIA) - Average rates at the Philippine Treasury bill auction later are expected to be stable due to the national government's strong cash position, National Treasurer Leonor Briones told AFX-ASIA by telephone interview.

    "We have a very strong cash position. For as long as we have that, our rates will remain steady," Briones said, adding that based on experience, "for the last two years, there have been several attacks on the peso but rates did not go up."

    "No less than the central bank and (Economic Planning) Secretary (Felipe) Medalla have said very clearly that the peso's weakness is a temporary phenomenon so I do not know if raising interest rates will be of any help," Briones added.

    The peso last Friday breached support at 44 against the dollar to close at 44.030. At 10:02 am, it stood at a weighted average of 43.996.

    Briones said she will be presenting to Finance Secretary Jose Pardo a sensitivity analysis of the impact of certain rate increases. "If interest rates rise, our debt service increases," she said,reacting to newspaper reports quoting Pardo as saying that full awards may be undertaken for long-dated government papers.

    Briones said that had government made a full award at the auction for 5-year bonds last Tuesday, the rate would have gone up by 100 basis points. At the said T-bond auction, the Treasury accepted only 1.230 of 3.0 bln pesos offered.

    At the T-bill auction last Monday, the Treasury also made partial awards for the 6-month and 1-year bills.

    Briones added the Treasury has no plans to cut its 4.0 bln peso weekly T-bill offer.


    [This message has been edited by DAILO (edited 07-11-2000).]
  • DAILODAILO Member PExer
    RP gov't takes hands-off stance on falling peso


    Manila -- Philippine central bank Governor Rafael Buenaventura said Tuesday he is not worried about the peso's fall to its 45 support against the U.S. dollar as he reiterated that the monetary authority will allow the market to dictate the dollar/peso level.

    The Philippine peso (PHP) crashed to its 45 support a few minutes after the open of afternoon local trade before dropping further to a low of 45.140 against Monday's 44.305 close.

    "I am not concerned. That's the market. We will let the market determine the exchange rate," Buenaventura said when asked if he is worried about the peso's fall to the 45 level.

    He said the peso continued to be weak along with other currencies in the region as regional currency markets still have to digest the impact of the previous increases in U.S. rates.

    "I think, the (hike) in U.S. interest rates has not sank in yet in the region. And consequently, it has to take its course for people to believe that the Fed (U.S. Federal Reserve) will not hike interest rates in the next six months," he said.

    He said political uncertainties in the region, including the long-standing Muslim insurgency problem in the southern Mindanao region in the Philippines, had been contributing to market jitters which led to the regional currencies' weakening.

    "There's a degree of apprehension on regional uncertainties which is grossly exaggerated (and) it's weighing down on all currencies (in the region)," Buenaventura said.

    He also said the shift into dollar assets from peso investments by bank depositors also helped pull down the peso.

    He said the central bank will review the dollar transactions of banks and their foreign exchange subsidiaries to ensure that there is no speculation against the peso.

    Buenaventura reiterated the central bank is not providing dollar liquidity at the local currency market to curb the peso's fall since he said there's enough dollars for normal trading requirements.

    He added the peso continued to be competitive as long as it is moving along with the declines in other regional currencies.


    Key overnight rates
    Meanwhile, Buenaventura said there may be no need for the monetary authority to adjust its key overnight rates despite the peso's fall beyond the critical 45 support level. Buenaventura also said the peso's decline may have limited impact on inflation.

    "There doesn't appear to be a need to change the overnight rates," Buenaventura said when asked if the central bank will adjust its key policy rates to curb the peso's fall.

    Buenaventura also said the peso's fall to the 45 level may not have a major impact on inflation. "The peso at 45 will have inflationary impact but it will not be as major as people think," he said.

    He said the government remains on track with its targeted 5-6% average inflation for the year. The country's average inflation stood at 3.5% in January-June. -- Bridge News
  • DAILODAILO Member PExer
    RP peso falls to 30-month low at 44.820

    Manila, July 11 -- The Philippine peso (PHP) crashed to a 30-month low against the U.S. dollar Tuesday as companies with dollar obligations scrambled to purchase greenbacks fearing a continued rise in the U.S. dollar/peso rate, dealers said.

    The central bank was said to have supported the sinking peso allowing it to slightly recover at the close after breaching the critical 45.000 barrier. The pair ended at 44.820 against Monday's 44.305 close.

    Tuesday's close was the peso's weakest level since it settled at 44.920 on Jan. 8, 1998.

    The pair opened at its day's low of 44.450 and steadily rose to breach one resistance level after another to hit an intra-day peak of 45.150 amid a hefty volume of U.S. $146.3 million against $91.3 million the previous session.

    "The corporates panicked today. There were a lot of corporates buying dollars, mostly local companies," said a dealer from a Dutch bank.

    "Everybody was spooked when they saw the dollar/peso approaching the 45 level. And it's the third year anniversary of the currency crisis. But really, there was negative sentiment on the Philippines so most people preferred holding dollars over pesos," said a second trader from a major local bank.

    Dealers said there was no incentive to hold on to peso assets due to the narrow differential between U.S. and domestic interest rates. They said the central bank had also been firm in its position to keep its key overnight rates steady despite the continued fall of the peso.

    Central bank Governor Rafael Buenaventura said earlier Tuesday the central bank will not adjust its key overnight rates despite the peso's fall to the 45 levels.

    A third trader said the central bank intervened by selling dollars at the spot market at the 45.100 level which allowed the local unit to close off its day's low.

    But Buenaventura maintained the central bank is not providing dollar liquidity as the monetary authority is allowing market forces to dictate the dollar/peso rate.

    Dealers said the dollar/peso will likely take its cue from other regional currencies Wednesday although the sentiment for the peso remains bearish due to low domestic short-term interest rates.

    The second dealer said the peso may again test its 45.000 support against the dollar before moving on to the next 45.500 barrier.

    The pair may also try to reach for its record intra-day high of 46.500 if negative sentiment on the peso prevails in the near to medium term. -- Bridge News


  • DAILODAILO Member PExer
    US DOLLAR RATES

    Ph Peso 44.935

    Yen 107.33

    HK Dollar 7.7956

    Indonesia Rupiah 9,410

    Thailand Baht 40.085

    SG Dollar 1.7436

    1 TW Dollar 30.852

    Korea Won 1,115

    1 Malaysian Ringgit 3.7997

    Euro 1.0521

    UK Pound 0.6601

    As of 2:13 AM GMT


  • DAILODAILO Member PExer
    Medalla: central bank should not intervene if peso falls on regional influence


    MANILA (AFX-ASIA) - The central bank should not intervene if the peso's weakness is brought about by the decline of other currencies in the region, Economic Planning Secretary Felipe Medalla said.

    Medalla told radio station DZMM that in recent days, the peso's fall has been largely due to external influences.

    "I think what the central bank should do is to allow sentiment to settle down. Once sentiment ebbs, I think that is maybe the better time for the central bank to sell (dollars)," Medalla said.

    "I think our fundamentals point to a stronger peso before the end of the year," Medalla said.

    "It's difficult for the central bank to intervene, especially if sentiment regionwide is for a stronger dollar, because the Philippines is a very small market," Medalla added.

    At 10:15 am, the peso stood at a weighted average of 45.045/dollar compared with yesterday's close of 44.820. It hit an intraday low of 45.100.
  • DAILODAILO Member PExer
    RP peso continues free fall early; eyes 45.20 mark

    Manila, July 12, 11:35a -- The Philippine peso extended its weak pitch against the U.S. dollar in early trading Wednesday amid steady corporate demand for the greenback and softer regional currencies led by the Thai baht, traders said.

    The market remains cautious and traders said the pair is eyeing the next critical level of 45.200 but are not ruling out more volatile swings as domestic sentiment remains impaired. The dollar/peso opened at 44.980 but shortly breached the 45 resistance to hit an early peak of 45.100.

    The dollar/peso was bid at 45.020 in Asian deals after closing at a 30-month peak of 44.820 in local trading Tuesday.

    "The entire region looks weak and it's not a good time to oversell the market. Exporters are holding on to their dollars," said a major local bank trader.

    The dollar/baht was bid at 40.075 versus 40.020 late Tuesday while the Indonesian rupiah was quoted at 9,404 compared to 9,315 late Tuesday.

    "There's still no good news locally to buy up the peso so everyone's set on testing how far the dollar can go," said a trader with a U.S. bank, adding market players are eyeing to bring the pair to its all time intra-day high of 46.50 last touched on Jan. 7, 1998 in the near term.

    "Panic is still in the air since the crucial levels were breached. Companies are all looking to hedge their obligations," said another foreign bank dealer. The central bank has not been rumored to intervene in early dollar/peso transactions, giving players enough leverage later to bid up the greenback, dealers said.

    Economic Planning Secretary Felipe Medalla told private radio station DZMM Wednesday that it may be a futile attempt if the central bank will intervene in the currency market if regional sentiment is for a strong U.S. dollar.

    "It's difficult to intervene if the sentiment is region-wide," Medalla said reiterating that the country's strong fundamentals such as a strong current account surplus support a recovery of the peso towards the 42-42.50 levels towards year-end.

    The country's current account yielded a surplus of $1.538 billion in January-March, albeit slightly lower than the year-ago surplus of $1.545 billion.

    "We won't correct unless the entire region corrects," said a fourth dealer adding that he sees the pair thinly supported at the 44.900 level. Traders said the pair may test 45.200 before heading further north to the next critical level of 45.500.

    Jonathan Ravelas, market strategist at Equitable PCIBank, said a rally for the pair towards the 45.700 level is "possible" before a correction takes place provided the 44.500 support is not breached.

    "Otherwise, a break below 44.500 could give way to the much awaited correction towards the 43.800-44 level," he said. -- Bridge News


  • DAILODAILO Member PExer
    US DOLLAR RATES

    Ph Peso 44.735

    Yen 107.32

    HK Dollar 7.7958

    Indonesia Rupiah 9,475

    Thailand Baht 40.065

    SG Dollar 1.7424

    1 TW Dollar 30.856

    Korea Won 1,115.4

    1 Malaysian Ringgit 3.7998

    Euro 1.054

    UK Pound 0.6607

    As of 7:16 AM GMT


  • DAILODAILO Member PExer
    Buenaventura: No central bank intervention in forex


    MANILA (AFX-ASIA) - The central bank continues to stay out of the currency market on the view that the peso's weakness is driven by adverse regional sentiment, governor Rafael Buenaventura said.

    "We are not intervening today," Buenaventura said, adding that "the exchange rate is principally being driven by regional sentiment."

    He also said the central bank is standing firm on its position that it is not necessary to adjust key interest rates.

    "We're trying to address the interest rate on longer-dated papers. The short-term (instruments) are still at appropriate levels."

    He said the 50-basis point increase yesterday in the coupon rate of the 7-year Treasury bond "should prevent more shifting of funds to dollar assets, " noting that the higher yield should make domestic government securities "quite comparable with U.S.-dollar denominated papers."

    Buenaventura said the central bank has ordered a review of the consolidated overbought position of banks, which should not exceed 10 pct of their unimpaired capital.

    "I reminded them of the old circular. I think we're going to reissue it. They should be sure they also have a list of their forex transactions and the amounts involved," he said.

    "They should exercise a little discretion when they sell, who they are selling (to)," he added.

    At 2:25 pm, the peso was at 44.942 to the dollar against yesterday's close of 44.820.
  • manabsmanabs Member PExer
    Hi Dailo. AAARRRRRGGGGHHHHHH! Peso going down again? Where do you think it's going to stabilize? Our company imports a lot of stuff but we can fix if we buy now. You think that's smart or would it be better to wait for a better exchange rate before taking action? PLEASE HELP!!! SNIFF, SNIFF. :(
  • DAILODAILO Member PExer
    Good Morning PExers!

    Happy Trading today!

    GREED IS GOOD! :D:D:D
  • JDELEONJDELEON Saint in Process PExer
    Unofficial rumor. DOLLAR will top off at 46.50 (within 2 weeks) then settle to 42.50 (slowly...).

  • DAILODAILO Member PExer
    Medalla: central bank should not intervene if peso falls on regional influence

    MANILA (AFX-ASIA) - The central bank should not intervene if the peso's weakness is brought about by the decline of other currencies in the region, Economic Planning Secretary Felipe Medalla said.

    Medalla told radio station DZMM that in recent days, the peso's fall has been largely due to external influences.

    "I think what the central bank should do is to allow sentiment to settle down. Once sentiment ebbs, I think that is maybe the better time for the central bank to sell (dollars)," Medalla said.

    "I think our fundamentals point to a stronger peso before the end of the year," Medalla said.

    "It's difficult for the central bank to intervene, especially if sentiment regionwide is for a stronger dollar, because the Philippines is a very small market," Medalla added.

    At 10:15 am, the peso stood at a weighted average of 45.045/dollar compared with yesterday's close of 44.820. It hit an intraday low of 45.100.

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