Peso flat despite glowing 7.5% economic growth for PH in Q2

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MANILA, Philippines—The peso closed flat on Thursday despite the release of positive economic data for the Philippines as investors shunned emerging markets amid worries over India’s growth.

After posting gains in early trading, the local currency closed at 44.75-to-$1 on Thursday, the same level as Wednesday’s close.

The peso’s close came despite gains made by the local equity index following the release of data that showed the Philippines’ gross domestic product expanded by 7.5 percent in the second quarter—matching China’s growth that was the fastest in Asia.

“The growth has already been priced in by the market,” BDO chief market strategist Jonathan Ravelas said.

Countering the optimism for the Philippines was Standard & Poor’s announcement of a possible downgrade for India, leading to risk-aversion over Asian emerging markets.

The peso initially opened stronger at 44.60: $1 and appreciated further to 44.50: $1 before closing at its lowest point for the day. Trading volume declined slightly to $1.042 billion from $1.242 billion the day before.

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  • jnkypscl

    Great news! A welcome respite from the horrifying saga of the alleged conspiracy between Janet Napoles and a good number of lawmakers to get their hands in public coffers.

    Disgust and incredulity characterized the public reaction to the scandal but others were also quick to play doomsayers to fuel the hysteria.

    With this announcement of our GDP remaining stable despite the upheaval caused by the pork barrel scam, it could only mean that our government must be doing something right! This should also give us pause to think – how can we help protect the gains already achieved?

    We all want to bring the culprits to justice. We all want to see corruption rooted out. But we should be mindful that in the process, we do not go down the road of mindless fingerpointing and faultfinding and turning against government and each other in our anger. If we should call for a housecleaning, we should be careful not to burn the house down.

    We should stay sober, vigilant, pro-active and optimistiic in our fight for reform and justice. We should stay united with each other and our government in finding a solution to the problem of corruption. If we need our government to clean up its ranks and institutionalize reforms, our government also needs us to support its efforts, give it the benefit of the doubt, not second guess and criticize its every move, and believe that if we stay united, we will get through this a stronger and better people and country

  • Ben

    The present peso level is a boom for exporters and OFWs. Our imports will be cheaper such as the AFP equipments…the domestic economy must be nurtured and PPP must be implemented already. We can`t rely 100% to the performance of the stock market for that is naturally prone to the prevailing world as well as domestic sentiments, we might as well strengthen the foundation of our economy. 7.5% is not enough, it must grow 8% or higher to make a dent on poverty and support most of the developmental aspects and modernization of the country…

  • Kaizensigma

    are the robust 1st and 2nd quarter data attributable to the effects of the mid term election anomalies, such as the heavier than normal inflow of hot money normally parked in swiss and foreign accounts, and other external factors including the US Fed’s QE policies? Now that election is behind the country and the US Fed is signalling the end of its QE policies, the 3rd and 4th quarter data may be the better measure of “real” GDP reflective of the actual underlying economic factors and realities? Or are these just “irrational exuberance” Pinoy style? hmmmmmmmm…. We wonder?

  • just_the_guy

    Meron at meron talagang sisilipin na isyu para pasama-in ang mood. Nice work Mr. Montecillo. You just successfully ruined my day.

  • tlb6432

    44-45 range should be a very good range that appeals to both OFWs, importers and exporters..

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