Already a Bloomberg.com user?
Sign in with the same account.
The Philippine peso rose to the strongest level in more than four years after the Federal Reserve signaled it is considering further monetary easing, supporting demand for emerging-market assets. Bonds fell.
Fed Chairman Ben S. Bernanke said yesterday possible stimulus measures may include adding to two rounds of asset purchases since the global financial crisis, as the U.S. weighs joining countries from Brazil to China in loosening policy. The $225 billion Philippine economy expanded 6.4 percent in the first quarter, the fastest pace since 2010, official data show.
“The peso is a strong currency as the Philippines is one of the few countries in Asia projecting accelerating growth,” said Rafael Algarra, executive vice president of financial markets at Security Bank Corp. in Manila. “There is more room for the peso to appreciate.”
The peso advanced 0.1 percent to 41.67 per dollar as of the 4 p.m. close in Manila, prices from Tullett Prebon Plc show. It earlier touched 41.56, the strongest level since April 2008. One-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 6.2 percent.
The yield on the Philippine government’s 8 percent bonds due July 2031 rose two basis points to 5.65 percent, according to Tradition Financial Services. A basis point is 0.01 percentage point.
President Benigno Aquino aims to bolster growth to as much as 7 percent next year from an estimated 6 percent this year.
To contact the reporter on this story: Karl Lester M. Yap in Manila at email@example.com
To contact the editor responsible for this story: Sandy Hendry at firstname.lastname@example.org.