Peso sustains appreciation
April 21,2010
THE PESO closed stronger against the dollar yesterday, tracking Asian currencies that gained amid prospects of monetary tightening in the region.
It appreciated 19 centavos to rise to P44.37 to the dollar from Tuesday’s finish of P44.56 to the dollar, extending gains for the second straight day.
“Most Asian currencies rose, led by South Korea’s won as the Bank of Korea’s plan to tighten monetary policy improved risk appetite,” a trader said.
Asian currencies rallied amid plans of raising rates, attracting global funds.
“The peso is also attracting inflows into the stock market, with foreign buyers still investing coupled with strong remittances, which established fresh dollar positions,” another trader said.
On the domestic front, the Bangko Sentral ng Pilipinas (BSP) is widely expected to keep its benchmark borrowing rate at a record-low of 4% in a rate-setting meeting today. Traders, however, said prospects of monetary authorities becoming more hawkish boosted the peso.
“Although we expect the BSP to keep its interest rates low, there might be a tone that it might reduce monetary stimulus and raise interest rates as the economy shows signs of a recovery,” a trader said. -- J. D. T. C. C.
April 21,2010
THE PESO closed stronger against the dollar yesterday, tracking Asian currencies that gained amid prospects of monetary tightening in the region.
It appreciated 19 centavos to rise to P44.37 to the dollar from Tuesday’s finish of P44.56 to the dollar, extending gains for the second straight day.
“Most Asian currencies rose, led by South Korea’s won as the Bank of Korea’s plan to tighten monetary policy improved risk appetite,” a trader said.
Asian currencies rallied amid plans of raising rates, attracting global funds.
“The peso is also attracting inflows into the stock market, with foreign buyers still investing coupled with strong remittances, which established fresh dollar positions,” another trader said.
On the domestic front, the Bangko Sentral ng Pilipinas (BSP) is widely expected to keep its benchmark borrowing rate at a record-low of 4% in a rate-setting meeting today. Traders, however, said prospects of monetary authorities becoming more hawkish boosted the peso.
“Although we expect the BSP to keep its interest rates low, there might be a tone that it might reduce monetary stimulus and raise interest rates as the economy shows signs of a recovery,” a trader said. -- J. D. T. C. C.