February 21, 2013

Peso declines to 40.71 per USD


Bangko Sentral ng Pilipinas Governor Amando Tetangco reiterated this week authorities are prepared to implement more measures to curb capital inflows.

There is room to further refine the central bank’s special- deposit accounts to make sure they are used as a liquidity management tool and not an investment outlet. The peso declined 0.1% to 40.71 per dollar, the largest decline since February 5.

Several Fed policy makers said the monetary authority should be ready to vary the pace of the $85 billion of debt purchases a month, according to minutes of the Federal Open Market Committee’s Jan. 29-30 meeting released yesterday. Bangko Sentral ng Pilipinas Governor Amando Tetangco reiterated this week authorities are prepared to implement more measures to curb capital inflows.

“There’s speculation the Fed may start looking at ending monetary easing sooner than previously indicated,” said Jonathan Ravelas, Manila-based chief market strategist at BDO Unibank Inc., the nation’s largest lender.