Nov. 17 (Bloomberg) -- The Philippine peso gained, snapping two days of losses, after the central bank said the balance of payments surplus this year will exceed its forecast, increasing the supply of foreign-exchange in the country.
The central bank expects this year’s payments surplus to exceed an earlier estimate of $6.7 billion and foreign-currency reserves to reach between $75 billion and $76 billion, Governor Amando Tetangco said yesterday. The peso fell earlier after Fitch Ratings said Europe’s debt crisis will pose a “serious risk” to U.S. banks.
“The expected surplus will complement the armory of the central bank in stabilizing the market and removing volatility,” said Marcelo Ayes, senior vice president at Rizal Commercial Banking Corp. in Manila. “Still, the peso will be affected by Europe’s contagion effect.”
The peso climbed 0.1 percent to 43.385 per dollar, according to Tullett Prebon Plc. It fell 0.3 percent to 43.550 earlier. The yield on the government’s 6.375 percent bonds due January 2022 climbed two basis points, or 0.02 percentage point, to 5.76 percent, according to Tradition Financial Services.
--Editors: Andrew Janes, Simon Harvey
To contact the reporter on this story: Karl Lester M. Yap in Manila at firstname.lastname@example.org
To contact the editor responsible for this story: Sandy Hendry at email@example.com