The peso is free falling!

[patsadahon]

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Stocks drop 17 pts, peso at 52.823:$ mid-trade

Share prices closed 0.76 percent lower Monday, slipping back after sharp gains on Friday on concerns the Bangko Sentral ng Pilipinas (BSP) may raise key interest rates later this week, dealers said.

They said rising oil prices and a weaker peso may prod the BSP to lift rates, ahead of another potential rise in US interest rates later next month.

The composite index shed 17.50 points to 2,282.89 after moving between 2,278.85 and 2,310.19. Volume reached 723.17 million shares worth P1.02 billion ($9.31 million). Losers outnumbered gainers 39 to 34, with 43 stocks closing flat.

The broader all-shares index fell 7.54 points to 1,429.87.

The peso averaged 52.823 to the US dollar mid-trade on Monday, down from last week's close of 52.78:$.

The peso opened at 52.85 and the dollar was trading between P52.87 and P52.78 on $193.5 million worth of transactions.

"Last Friday's recovery was just a technical bounce, which cannot be sustained as concerns over rising interest rates remain," said Nestor Aguila of DA Market Securities.

AB Capital Securities said, in a note to clients, BSP may increase its benchmark overnight rates at its policy meeting on Thursday, after keeping them steady for seven straight months.

Property firms fell on worries that higher interest rates would dampen real estate sales.

Ayala Land Inc. fell 25 centavos to P12.50 while Megaworld Corp shed two centavos to P1.54.

[marke]

Peso drops to 53.25:$, stocks down


The peso slumped to a five-month low Thursday to breach the 53 mark as it closed at 53.25 against the US dollar from Wednesday’s 52.92 finish.

Bangko Sentral ng Pilipinas Gov. Amando Tetangco said the peso's fall was due to regional weakening given the broad strengthening of the US dollar. He added that the domestic dollar demand is pulling down the local currency.

The peso opened at 52.95:$ with transaction volume amounting to $526.5 million. The greenback was traded between P52.94 and P53.25.

Asian currencies weakened for the third straight day on Thursday amid a sell-off in regional stocks on growing expectations that the US Federal Reserve will raise interest rates this month for a 17th straight time.

[kamikaze426]

Mao mani ganahan sa opposition diba? They are doing a good job in pulling the peso down..

[wanderlust]

Malacanang is in defensive mode again. Thats the danger of using the value of the peso as the measure of economic progress. [/color]

Huh? It would be ridiculous to use the peso's value as the sole measure of economic progress, but the fact that fiscal discipline has helped strengthen the peso is recognized by economic analysts and the business community, and is not just a propaganda of Malacanang.

Without a solid foundation for its appreciation the peso would have collapsed with the coup attempt in February. But instead it continued to strengthen. Coup plots are the work of those who are dismayed at the prospect that the Arroyo administration is actually succeeding in putting the economy back on track. They are happy whenever the peso falls, because they can use the issue against GMA. That shows how much they really love this country.

[marke]

Now what can you say about the decline of the peso? Does it mean that the fiscal discipline was not sustained?

[marke]

Peso opens at P53.20:$

The peso opened P53. 20 Friday morning against the US dollar from Thursday’s P53. 25 close.

As of 9: 30 a.m. the peso is trading at a range of P53.160-P53. 200. Volume has reached US$130 million.

[marke]

Peso hits 6-month low vs dollar as US rate hike fears
Posted: 5:04 PM | Jun. 14, 2006

Erik dela Cruz
XFN-Asia

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(UPDATE) THE PESO slid to a six-month low against the US dollar in morning trade, as the greenback continued to strengthen on expectations of further interest rate increases in the US, and no sign yet the Philippine central bank will intervene, dealers said.

The peso fell to 53.48 to the dollar in early trade, its weakest since Dec 22 when it dropped to 53.49 intra-day. The local unit then recovered to close at 53.20 with trade volume having reached 459.95 million dollars. It closed at 53.33 on Tuesday.