PH peso rebounds from 3-day losing streak
MANILA, Philippines – The Philippine peso rebounded from a 3-day losing streak, but remained above the P46 to $1 level on Thursday, August 13.
The peso gained 11 centavos to close at P46.15 to $1 Thursday from Wednesday’s P46.26 to $1. (READ: PH peso weakens further to P46:$1)
Volume decreased to P747.7 million ($16.18 million) from P1.1 billion ($23.80 million) on Wednesday.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr said currencies in the region are expected to continue to trade from the soft side, taking cues from the Chinese yuan and the data coming out of the US, as well as the development in the debt crisis in Greece.
The exchange rate almost, always, is the first to domestically reflect volatility in global markets.
"Hence, as is our policy, the BSP, while maintaining essentially a market-determined exchange rate, will be present in the market to rein in excessive volatility,” Tetangco said.
The BSP intervened in the foreign exchange market to smoothen the movement of the peso against the greenback, traders said.
China's devaluation of the yuan roiled financial markets around the globe with the Philippine peso not spared from the carnage, said Nicholas Antonio Mapa, Bank of the Philippine Islands market research and strategy officer.
"Despite the weakness in the peso, we continue to be one of the better performing currencies in the region and BSP was able to manage the depreciation in an orderly fashion, given our
more than ample level of GIR (gross international reserve)," Mapa said.
BSP Deputy Governor Diwa Guinigundo pointed out that financial markets are still digesting developments in the region, particularly the decision of the People’s Bank of China (PBOC) to devalue the yuan.
Guinigundo reiterated that the BSP’s mandate is to smoothen the volatility in the movement of the peso and ensure that there is orderly trading in the market.
“The BSP has no preference. The exchange rate remains flexible and market determined. Again, the BSP is in the market only to ensure that those volatilities are kept on minimum,” he said.
He said the peso is one of the least-depreciated currencies in the region since the Chinese central bank allowed the devaluation of the yuan. (READ: PH peso 2nd least volatile Asian currency so far in 2015) – Rappler.com