Dollar Weakens as US Government Battle over Budget; Shutdown Looming with the Deadlock

MANILA, Philippines – The US dollar weakened as the US Government battle over budget and a deadlock occurred with a shutdown looming as the Congress approved a bill put in motion by the Republicans for US President Obama’s Healthcare Law postponement.

Reportedly, the Republicans refuse to raise the US debt ceiling, which the government badly needed, unless President Obama’s health bill has been properly ‘treated’ like they want it to be. If the deadlock would not be resolved, then the US government would default on its payments.

To date, the US dollar is equivalent to 43.61 Philippine pesos; previously, the exchange rate was P41 to a dollar. This is also true with other Asian countries. Trading at the Philippine stock exchange has dropped, as well, just like other Asian markets.

US-dollar-exchange-rate
Image credit: earninterestrates.com

Smart traders would take the opportunity to buy shares now, to be sold later when the shares’ prices increase.

For the numerous Filipino dollar earners, it is a boon because their hard earned money would now be more valuable in the local currency. Online workers are also happy too about the current dollar-peso exchange rate for the same reason.

The effect of the US government deadlock on budget, however, would have its toll though on the world market if it is not resolved before the set deadline and a government shutdown occurs.

The US Republicans seemed adamant on their stand about the Obama Health Care, while the US President is also firm on his stand.

The world watches as the US government is shackled – not by foreign invasion – but by its own House of Representatives.

Author’s opinion:

What now America? Would you end your squabbles and remain the great UNITED States, or would you allow the economic ‘demise’ of your own country and that of others because of your own disability to arrive at a civilized and appropriate agreement?

The choice is yours.

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