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Peso falls as BSP takes steps to fend off speculative investments


MANILA, Philippines—The peso fell on the first trading day of the week after the Bangko Sentral ng Pilipinas stressed it would not tolerate currency-appreciation pressures resulting from speculative portfolio investments.

The local currency closed at 40.70 against the US dollar, down by 12.5 centavos from Friday’s finish of 40.575:$1.

Intraday high hit 40.62:$1, while intraday low settled at 40.74:$1.

Volume of trade reached $579.5 million from $630.7 million previously.

The BSP has said it is prepared to implement more measures, if necessary, should it see signs of rising speculative activities involving the currency.

BSP Governor Amando Tetangco Jr. reiterated last week that the monetary authority would allow the peso to appreciate some more this year but only if this would be brought about mainly by structural flows, which include remittances and foreign direct investments.

He said the BSP would not accommodate peso appreciation if this would mostly come from currency speculation by yield-seeking fund owners.

Traders said pronouncements from the BSP would have an impact on investment decisions of investors, but they noted that the outlook on the Philippine economy for this year has remained positive and that this would help keep a healthy appetite for peso-denominated securities.

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Tags: business and finance , currencies , economy , Foreign Exchange , Philippine peso , Philippines , US dollar

  • oh_noh

    *haha* “manipulating” the forex just now?

    or, just a ploy before you hit that “peso turbo” button again?!?!

    cheers to a strong economy – in paper!

  • pinoypower

    At last the BSP is realizing that the appreciation of the peso is mainly because of speculative stock and currency investors who are not here on the long term but simply to make profits for a limited period. They make profits at the expense of the OFWs whose remittances value are reduced in inverse proportion to the appreciation of the peso. This the reason why inspite of the claims that the economy is expanding, the effect is not being felt by the majority. Ang mga foreign investors ng ‘hot money’ lang ang nakikinabang. The BSP should always be vigilant.
    The government in general should strive to attract foreign direct investment as a means of propping up the economy. Compared to our Asean neighbors, the Philippines attracts very little FDI.

  • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

    BSP, let it appreciate more and paging government agency (DTI?? who ever in-charge….) to control food prices………….

  • tsalalap

    Lugi kaming mga OFW sa laki ng binaba sa Peso

    • http://pulse.yahoo.com/_D3LDMMAKC6UDQLDVFP2DGSJBXY Jezzrel

      Ikaw naman, kayo na lang ba ang me gusto guminhawa.. pano naman kaming nandito sa Pinas?

      • oh_noh

        lahat gustong guminhawa.

        anong pakinabang (ng lahat) kung di rin naman bumababa ang presyo ng mga bilihin?

        hooray to a strong economy – in paper!

  • Hayek_sa_Maynila

    Except for the Rupiah, most currencies in Asia fell against USD…so its hard to say the PHP’s dip is because of the BSP’s statements and policies. 

    Yesterday was a good opportunity for BSP to allow the market to rise further and bring it back above 41 to make up for the excessive gains the PHP saw in 2012.

  • opinyonlangpo

    I trust the Philippine currency thats why almost all my money are in peso.

  • bogli_anakdami

    dapat eh $1:P100 ang palitan… para maraming pang load sa cell

  • http://yahoo.com koy-bili

    …let it fall some more

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