One Peso Blog March Archive

Philippine peso may drop to 50-level

03/29/09 00:27

The Philippine peso is expected to drop to the 50-peso level by the end of the year as remittances from overseas workers are predicted to decline.

Due to job cuts happening in industrialized economies, these Filipino workers are fearing that they may not be able to send in money anymore. HSBC predicts a 20 percent drop in foreign remittances this year, while Euben Paracuelles, an RBS economist in Singapore, predicts a drop of 8 percent.

Link: Bloomberg.com: Asia

Chilean stocks, peso up

Chilean stocks rose and the peso strengthened its position, shadowing global markets encouraged by the prospects of increased stimulus spending by the government of China.

The blue-chip IPSA index rose 1.42 percent higher at 2,435.74, while the all-market IGPA index rose 1.0 percent higher at 11,736.47 points..

Despite this, Chile rose somewhat slower thn the rest of the regional markets due to losses from one of its largest markets, Soquimich.

Link: Chile stocks rise following global markets, peso up | Deals | Regulatory News | Reuters

Mexican bonds fall on increased inflation speculations

Mexico's peso-dominated bonds fell for the second consecutive days upon speculation that the central bank will announce that inflation has quickened, which will limit further reduction in key lending rates.

Inflation excluding fresh food and energy is expected to quicken to 0.46 percent in Februaru, up from 0.43 percent in January, confirming projections that there won't be any improvement in core inflation.

Link: Bloomberg.com: Latin America

Argentine peso stumbles on government intervention rumors

Argentina's peso fell to its lowest in six years and stocks tumbled after speculations that the Argentine government will take over the grain trade increased. This has also further fueled the burning conflict between President Cristina Fernandez de Kirchner and the country's rice farmers.

A government official who chose not to be named recently revealed that the government is planning to buy and sell grains before exporting to international markets to ensure that there is adequate supply.

Link: Bloomberg.com: Latin America