Peso seen to hit 39:$1 by 2013

In the latest research of a Bank of America, an investment bank it said that peso could hit 30-level exchange rate against US dollar for 2013. This is the results of investors interest to flood emerging markets regardless of the outcome of the US elections on Tuesday.

Philippine Peso-US Dollar Exchange Rate Nov. 5, 2012
Photo: Philippine Peso-US Dollar Exchange Rate Nov. 5, 2012
Peso appreciates yearly based on statistics

Merrill Lynch of BoFa said that we could expect an average of 41 to dollar by the first quarter of 2013 and strong forecast of 39.80 appreciation for the rest of the year.

BofA’s forecasts are stronger than the government’s official assumption of 42-45 next year. As of this posting, 1 US dollar equals a strong 41.2449 pesos.

On the same period of 2010, London-based think-tank Capital Economics Ltd also sees peso to appreciate 39 to $1 by the end of 20111 (similar case of today's forecast).

With the forecast stated above, we know that you want information on how exchange rates move in daily basis. Basically, the strength of Philippine peso depends on several factors and determined by the law of supply and demand.

When demand for Philippine peso goes up, peso-dollar exchange rate goes down and vice versa.

The demand for Peso can results from buying of Philippine goods by US importers, tourists visiting the Philippines needing local currency, remittances from the OFWs.

During Christmas, it can be observed that exchange rate is going down as many OFWs send money in the Philippines.

In a poll of Yahoo News, it asks readers on the question "How would you feel if peso hits P30:$1? ".  Results as of this writing shows that 48% of OFWs won't like this, 37% believe it's a good news and 14% said that they will wait and see if it will going to happen.


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