US Dollar

[uls]

coz when things go south, the USD is the place to hide

back in March it was like the end of the world

look at the dollar and stocks

they moved in opposite direction

flight to safety






same thing happened in 2008

[uls]

then why did the dollar fall

coz the Fed loosened monetary policy

cut rates to ZERO, bought assets

[kagalingan]

simula nag-george floyd bumagsak na dollar exchange rate.

49.4590.

[StockEngine]

Lol... lakas ng pisooos

[uls]

Bakit mahina dollar?

just look at stocks


NASDAQ



risk-on mode

[Monseratto]

Loan cheap low interest dollar... put money in stocks... just seat back and relax.

[uls]

borrow cheap $$$ buy assets

dollar is funding currency

goes all over the world chasing yield

kaya lumakas ibang currencies vs $$$

[Monseratto]

Yep, no economic activity because of the lockdown. No imports, no dollar demand.

Import Collapse Turns Into a Boon for Philippines’ Currency

One consequence of the Philippines’ struggling economy is turning into a boon for its currency.

A collapse in imports has had a positive effect on the nation’s trade deficit, leading to lower demand for overseas currencies and helping to strengthen the peso. The Philippine currency is the best performer in Asia this year, up more than 2% against the dollar.

“With Philippine growth likely to be hamstrung by enforced and voluntary social distancing, imports will remain weak,” said Eugenia Fabon Victorino, head of Asia strategy at SEB AB in Singapore. “This will cap the trade deficit, allowing the peso to strengthen.”

[uls]

Yep, no economic activity because of the lockdown. No imports, no dollar demand.

Import Collapse Turns Into a Boon for Philippines’ Currency

Sorry guys i can't help it

i'm sick



June 29:

dito ka magtataka

ang lakas ng PHP kahit naka 125 bps rate cut na ang BSP this year

know why?

coz of the lockdown

the gov't stopped the economy dead in its tracks in March

without economic activity imports fell in April



with a smaller trade deficit, nag surplus ang current account natin



kaya ang lakas ng PHP

(investors use the current account of an EM country as a gauge: surplus good, deficit bad)

--

dahil sa paghina ng imports nakatipid tayo ng dollars

combine that with dollars we got from foreign loans our forex reserves are at an all time high



pero going forward we're facing headwinds

sigurado mas konte ang OFW remittances

[StockEngine]

49.38