Ok You Finacial Wizards....question

[frosty (chris)]

  Is it really based on perception or confidence of the mighty dollar, pound or dinar?  

 

  

On a more serious note Jake, this is what happens.

 

I have been watching the forex chart on the AUS/US $ this morning. Around Aus market open time 7am here in the PI it was trading 73.45c now for some unknown reason it has steadily dropped to 72.84 market close, which is a difference of 61c. There has been no news to affect this drop. The RUMOUR is that the Reserve Bank will cut interest rates next month, so all the big players have gone short (sell ) hoping the $ will go down and so it has on volume. When you think that the forex market is turning over 5 trillion $ a day, some one is making serious money. There is an old saying in the market, buy the rumour, sell the fact.

[Jake]

 

  Is it really based on perception or confidence of the mighty dollar, pound or dinar?  

 

  

On a more serious note Jake, this is what happens.

 

I have been watching the forex chart on the AUS/US $ this morning. Around Aus market open time 7am here in the PI it was trading 73.45c now for some unknown reason it has steadily dropped to 72.84 market close, which is a difference of 61c. There has been no news to affect this drop. The RUMOUR is that the Reserve Bank will cut interest rates next month, so all the big players have gone short (sell ) hoping the $ will go down and so it has on volume. When you think that the forex market is turning over 5 trillion $ a day, some one is making serious money. There is an old saying in the market, buy the rumour, sell the fact.

 

Excellent point Frosty!  I guess it really doesn't take economic scholars, experienced wall street traders or govt experts to move the dollar up or down.  Just read some comic books or well placed rumors to make a run for the money.  These days billion of $$ are moved by a few keystrokes on the keyboard.  All because someone suddenly farts in a Forex board meeting, the price of methane commodities will be affected?

 

In my case, the supply and demand for air fresheners would go through the roof......he, he.  

[Jack Peterson]

:thumbsup:  Something you might like to read, I believe the peso is a Floating Currency

http://www.investopedia.com/ask/answers/forex/how-forex-exchange-rates-set.asp?header_alt=true

 

My only little input on this as it is all Mind Boggling to me.  and it doesn't seem to know either about what will happen after Elections  :)

 

Jack 

[Dave Hounddriver]

I believe the peso is a Floating Currency

 

Yes, they say, but it is really free floating if the BSP can step in at any time to "temper sharp fluctuatons"?

 

5. What is the country’s foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to market forces.Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the peso to be determined by the supply and demand of foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.  http://www.bsp.gov.ph/downloads/publications/faqs/exchange.pdf

[Jack Peterson]

 

I believe the peso is a Floating Currency

 

Yes, they say, but it is really free floating if the BSP can step in at any time to "temper sharp fluctuatons"?

 

5. What is the country’s foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to market forces.Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the peso to be determined by the supply and demand of foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.  http://www.bsp.gov.ph/downloads/publications/faqs/exchange.pdf

 

Well we know where we are 

 

Jack  :rolleyes:

[sonjack2847]

 

 

I believe the peso is a Floating Currency

 

Yes, they say, but it is really free floating if the BSP can step in at any time to "temper sharp fluctuatons"?

 

5. What is the country’s foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to market forces.Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the peso to be determined by the supply and demand of foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.  http://www.bsp.gov.ph/downloads/publications/faqs/exchange.pdf

 

Well we know where we are wink.png

 

Jack  :rolleyes:

 

Basically if a currency is in demand it gets stronger on the market 

[Jake]

 

 

I believe the peso is a Floating Currency

 

Yes, they say, but it is really free floating if the BSP can step in at any time to "temper sharp fluctuatons"?

 

5. What is the country’s foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to market forces.Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the peso to be determined by the supply and demand of foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.  http://www.bsp.gov.ph/downloads/publications/faqs/exchange.pdf

 

Well we know where we are wink.png

 

Jack  :rolleyes:

 

The Philippine peso is a floating currency?  Does that mean the Central bank in Manila is reactionary, buying and selling US dollars just to maintain the status quo?  So as more and more Islands in the South China sea are flying the Chinese flag, you will see more and more pesos start floating, like a bonti cigar?  

[Thomas]

The Philippine peso is a floating currency?

Earlier the Bangko Sentral ng Pilipinas (BSP) said they want to keep the peso between /a level I have forgot/ and up to 45 p per USD, but it seem they have skiped that.

[frosty (chris)]

 

 

 

I believe the peso is a Floating Currency

 

Yes, they say, but it is really free floating if the BSP can step in at any time to "temper sharp fluctuatons"?

 

5. What is the country’s foreign exchange policy? At present, the country's exchange rate policy supports a freely floating exchange rate system whereby the Bangko Sentral ng Pilipinas (BSP) leaves the determination of the exchange rate to market forces.Under a market-determined exchange rate framework, the BSP does not set the foreign exchange rate but instead allows the value of the peso to be determined by the supply and demand of foreign exchange. Thus, the BSP’s participation in the foreign exchange market is limited to temper sharp fluctuations in the exchange rate. On such occasions of excessive movements, the BSP enters the market mainly to maintain order and stability. When warranted, the BSP also stands ready to provide some liquidity and ensure that legitimate demands for foreign currency are satisfied.  http://www.bsp.gov.ph/downloads/publications/faqs/exchange.pdf

 

Well we know where we are wink.png

 

Jack  :rolleyes:

 

The Philippine peso is a floating currency?  Does that mean the Central bank in Manila is reactionary, buying and selling US dollars just to maintain the status quo?  So as more and more Islands in the South China sea are flying the Chinese flag, you will see more and more pesos start floating, like a bonti cigar?  

 

I think you will find most country's will manipulate their own currencies for many reasons, I remember reading the U.S. at one time wanted to keep their $ low (sell their own dollar down) to compete with China on import/export trades. It's kind of funny Japan is considered a safe haven when it comes to Forex and their economy is hardly setting the world on fire, go figure

[Jake]

the U.S. at one time wanted to keep their $ low (sell their own dollar down) to compete with China on import/export trades. 

 

Hmmm.....very interesting, even though I know nothing about trading on a global scale.  I would assume that China is charging too much on US made products being imported to their country?  And the US is trying to balance the trade by increasing import tax on their products?  I have no idea how trading works or how they try to agree on what is balanced, which I assume it's not balanced right now.

 

And hence the US dollar is being manipulated to keep it down low,  How does that work as far as working the trade in our favor?  By the way, I took a couple semesters of business management and I'm still asking these stupid questions.  Please forgive me teacher.

 

Respectfully -- Jake