Peso goes up as BSP moves to keep same policy rates

MANILA, Philippines—The peso inched up on Thursday as the move of the Bangko Sentral ng Pilipinas to keep interest rates steady lifted somewhat appetite for peso-denominated portfolio instruments.

The local currency closed at its intraday high 42.61 against the US dollar, up by 4 centavos from the previous day’s finish of 42.65:$1. Intraday low settled at 42.69:$1.

Volume of trade amounted to $825.65 million from $947 million previously.

The appreciation of the peso came with the BSP’s decision to maintain its key policy rates at 4 and 6 percent for overnight borrowing and lending, even if some thought the BSP had room to cut interest rates further.

Market players said the decision not to slash interest rates again was welcomed by yield-seeking investors.

Interest rates of the BSP influence commercial interest rates, including yields of investment instruments.

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Tags: currencies , Foreign Exchange , Philippine peso , US dollar