Bloomberg News

Philippine Peso Advances as Export Growth Fastest in 17 Months

July 10, 2012

The Philippine peso rose, halting a two-day loss, after a government report showed exports increased at the fastest pace in 17 months. Bonds fell.

Overseas sales climbed 19.7 percent in May from a year earlier after a 7.6 percent advance in April, beating the median estimate in a Bloomberg survey of 6.5 percent, data showed today. Gains in the peso may be limited after the central bank said July 7 it would prohibit overseas funds from investing in its special deposit accounts, according to Enrico Tanuwidjaja, a senior currency analyst at Malayan Banking Bhd.

“Exports are a lot better than expected,” said Singapore- based Tanuwidjaja. “It will add to the positivity of the peso. The bigger thing that would inhibit the one-way street up for the peso is that foreigners can’t put their money in SDAs.”

The peso appreciated 0.2 percent to 41.855 per dollar in Manila, according to Tullett Prebon Plc. The currency reached 41.60 on July 4, the strongest level since April 2008. It rose 4.7 percent this year, the best performance among Asia’s 10 most-traded currencies. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 6.2 percent.

The yield on the government’s 15 percent bonds due March 2022 increased one basis point, or 0.01 percentage point, to 5.83 percent, according to noon fixing prices from the Philippine Dealing & Exchange Corp.

To contact the reporter for this story: Lilian Karunungan in Singapore at at lkarunungan@bloomberg.net.

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.


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