By Joann Santiago
MANILA, Aug. 25 (PNA) — The Philippine peso recovered against the US dollar on Tuesday as investors took profit following the dollar’s recent rally.
It ended the day at 46.61, Php 0.20 better than its latest five-year, two-month low close of 46.81 a day ago.
It opened at 46.79, weaker than the previous day’s 46.70 start Monday.
It traded between its opening and closing levels, bringing the day’s average to 46.71.
Volume of trade reached USD 765.2 million, a tad higher than the previous trading day’s USD 572.5 million.
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. said the peso continued to be affected by China-related issues, concerns on the timing of the looming Federal Reserve rate hike, and the movement of prices of oil and other commodities.
He said these factors remained the cause of market uncertainties, which in turn brought about the volatilities in the financial markets.
“But what is important is that we stick to our policy framework – – control inflation, banking reforms, continue sound macrofundamentals,” he said.
The central bank chief also discounted the need to draw funds from the central bank’s foreign reserves in line with the BSP’s bid to intervene once extreme volatilities occur.
“Our policy is we don’t go against the fundamental trend. We essentially try to smooth out volatility. (Exchange rate volatilities in recent day is) not major (so) there’s no need for that (intervention),” he added. (PNA)