Friday, November 25, 2016

Central bank to keep peso 'in check' after hitting P50 vs dollar

ABS-CBN News


MANILA - The central bank said Friday it was guarding against "excessive movements" in the foreign exchange market after the peso weakened to the key P50 per dollar level.
The peso held at P49.99 after slipping to a level not seen since the 2008 global financial crisis in the previous day, as investors braced for an interest rate adjustment by the Federal Reserve and US president-elect Donald Trump's assumption into office.
"We will continue to monitor market action to ensure excessive movements are in check," Bangko Sentral ng Pilipinas Governor Amando Tetangco said in a text message to reporters.
An expected pick-up in remittances as the Christmas season nears is affected to strengthen the peso, Tetangco said.
The peso's weakness is in line with other currencies in the region with robust economic data in the US adding fuel to the dollar's charge.

The observed peso weakness is in line with the movements in regional currencies, which in turn reflect usd strength. The latest eco numbers that have come out of the US were upbeat. Together w increased bets on a U.S. Interest rate hike, the strength of the usd has continued. This may however be dampened by the long thanksgiving holiday. Peso weakness may also be trimmed as remittances are expected to rise ahead of the Christmas holidays. We will continue to monitor market action to ensure excessive movements are in check.

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