Home > Forex analytics > Forex exchange rates' theory > Forming factors for Peso exchange rate

Forming factors for Peso exchange rate

Determining the exchange rate for any currency is a tricky thing to do. It is not just the currencies themselves that govern the results but several other variables too play part. Some of these variables include economy, government, and several other environmental factors. Each of these factors has it's own influence on the exchange rate. While this holds true for every currency, peso is no exception. Peso exchange rate too is governed by all the above-mentioned factors, not to forget the supply and demand.

Not all of us would be concerned about having a hunch at peso dollar exchange rate. To many of us the figures don't really matter at all. However, the numbers are of absolute importance to some. Think importer, exporter, traveler or a currency changer. All these people have great interest and concern in the exchange rate figures. These people are always keeping an eye on various factors in the market that may affect the exchange rate.

Considering the number of factors that play role in determining the exchange rate, verifying the graph of exchange rate is slightly difficult. Having said that, though there are a few patterns of the exchange rate that have remained consistent. One such trend with the peso exchange rate is that it tends to go down during thee months of June and December. This is because during that time oversea workers send a lot of remittances to the Philippines during June for enrollment. Since December brings along Christmas holidays, there is a dip in the exchange rate.

While the patterns regarding decline of the exchange rate are constant, there are some patterns as regards the upward movement of the exchange rate too. The months of January and September are usually the ones that witness an increase in the exchange rate. The increase during these months is a result of the payment made by the importers who pay out for the goods purchased.

So if you are wondering what the exchange rate is going to be, make sure you consider all the factors and evaluate the exchange rate pattern fairly well.

Related topics: