What are the factors that influence the USD to PHP exchange rate?

1 answers

• Mar 19, 2022 · 3 years ago
  The exchange rate between USD and PHP is influenced by various factors. Economic indicators, such as interest rates, inflation rates, and economic growth, play a significant role in determining the exchange rate. For example, if the US Federal Reserve raises interest rates, it can attract foreign investors and strengthen the USD against PHP. Similarly, if the Philippine economy experiences high inflation, it can weaken the PHP against USD. Political stability and government policies also impact the exchange rate. Additionally, market sentiment and investor confidence can cause short-term fluctuations in the exchange rate. It's important to note that exchange rates are determined by the interaction of supply and demand in the foreign exchange market, which is influenced by a wide range of factors.
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