The Philippine peso fell as worse- than-expected U.S. data added to concern the recovery in the world’s largest economy is faltering. Bonds gained.
Orders placed with U.S. factories for durable goods rose 2.2 percent in February, less than the 3 percent gain forecast in a Bloomberg News survey, a government report showed yesterday. Global growth is still fragile and unsteady, Bangko Sentral ng Pilipinas Governor Amando Tetangco said yesterday. The tax agency exceeded its revenue target for February by 8.8 percent, the government reported today.
“The U.S. economy is recovering but there are still questions about its sustainability,” said Antonio Espedido, treasurer at China Banking Corp. in Manila. “There is more pressure for the peso to weaken.”
The peso closed 0.1 percent weaker at 42.98 per dollar in Manila, prices from Tullett Prebon Plc show. The currency has strengthened 2 percent this quarter. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 5.90 percent.
The yield on the 6.5 percent bonds due April 2021 fell 15 basis points, or 0.15 percentage point, to 5.25 percent, according to Tradition Financial Services.
President Benigno Aquino forecast the economy will expand as much as 6 percent this year from 3.7 percent in 2011. The central bank cut its benchmark rate to 4 percent this month, matching a record low.
The central bank is seeing ”modest, manageable” second- round inflation and authorities will evaluate monetary policy settings should risks persist, Assistant Governor Cyd Amador told reporters today in Manila. Pausing from rate cuts is ”on the table,” Amador said.
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