Manila ready to rein in peso volatility
MANILA: The Philippine central bank will not hesitate to intervene in the currency market if movements in the peso versus the dollar become excessive, governor Amando Tetangco said yesterday.
“Our policy has always been to allow market forces to determine the exchange rate of the peso but if we see movements that are excessive ... we will not hesitate to participate in the market to keep volatility in check,” said Tetangco.
Earlier this week, the peso fell to its weakest against the dollar since 2008. Tetangco said the peso’s decline was in line with losses in emerging market currencies driven by expectations of a US interest rate hike next month. – Reuters