Bloomberg News

Philippine Peso Trades Near Four-Year High Before Exports Data

December 10, 2012

The Philippine peso traded near the highest level since March 2008 before a report tomorrow that may show exports expanded for a second month in October.

Overseas sales rose 10.5 percent from a year earlier, according to the median estimate of eight economists surveyed by Bloomberg. The $225 billion economy grew 7.1 percent in the three months ended September, the fastest pace in two years. Bangko Sentral ng Pilipinas is looking at measures to help deal with rising inflows, which may include new limits on currency forwards, Governor Amando Tetangco said in an e-mail last week.

“Investors remain positive on the Philippines because of the growth surprise even though there’s some caution on what the central bank could do to curb inflows,” said Enrico Tanuwidjaja, an economist at Royal Bank of Scotland Group Plc in Singapore.

The peso closed at 40.938 per dollar, compared with 40.933 on Dec. 7, according to Tullett Prebon Plc. It reached the high of 40.840 on Nov. 29. One-month implied volatility, a measure of expected moves in exchange rates used to price options, was little changed at 4.40 percent.

Exports climbed 22.8 percent in September, the fastest in 21 months, after contracting 9 percent in August.

Damage to farm output from Storm Bopha, the most devastating cyclone to hit the Southeast Asian nation this year, is seen to be manageable and will probably have a minimal impact on supply and inflation, Deputy Governor Diwa Guinigundo said yesterday.

The government may boost the volume of debt auctions next quarter to take advantage of surplus funds in the banking system, Treasurer Rosalia de Leon said today.

The yield on the 8 percent government bonds due July 2031 rose one basis point, or 0.01 percentage point, to 5.5 percent, according to Tradition Financial Services.

To contact the reporter on this story: Clarissa Batino at cbatino@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net


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