Peso rises as central bank adjusts strategy

The peso rises, the central bank capitulates, and the traders are scared away.

The central bank is doing a good job in a bad environment, declares a very senior officer from a foreign bank in Manila even as the Philippine peso closed stronger at Ps45.495 to the dollar on Friday when the Bangko Sentral ng Pilipinas BSP intervened - again scaring forex traders away.
 
At the same time, after deciding last Wednesday to leave interest rates untouched, the BSP capitulated to market realities and changed its course by announcing a round of 100-basis point increases in overnight rates.

The peso closed stronger at 45.495 on Friday at the Philippine Dealing System PDS, the countrys interbank trading system for...



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