By Lilian Karunungan
The Philippine peso weakened to a
nine-month low on concern the Federal Reserve will scale back
its monetary stimulus, reducing the flow of funds to emerging
markets. Government bonds fell for a third day.
The Dollar Index advanced for a second day after U.S. data
yesterday showed consumer confidence climbed to the highest
level in more than five years and home prices increased by the
most in seven years. Foreign funds sold $85 million more
Philippine equities than they bought in the last three days,
exchange data show. The Philippine Stock Exchange Composite
Index fell 3.8 percent since reaching a record high on May 15.
It was 0.2 percent higher today.
“People are expecting a tapering of quantitative easing in
the U.S.,” said Joey Cuyegkeng, an economist in Manila at ING
Groep NV. “The relatively richer valuation in the stock market
has also prompted some offshore profit-taking from the
Philippines.”
The peso declined 0.9 percent to 42.335 per dollar as of
10:05 a.m. in Manila, the lowest level since Aug. 30, according
to prices from Tullett Prebon Plc. The currency dropped 2.7
percent this month, taking this year’s loss to 3.1 percent.
The Dollar Index, which Intercontinental Exchange Inc. uses
to track the green back against currencies of six major U.S.
trading partners, added 0.17 percent to 84.244. The Fed
purchases $85 billion of bonds monthly.
The yield on the government’s 8 percent bonds due July 2031
rose 15 basis points to 4.15 percent, according to prices from
Tradition Financial Services.
Good of you? Good for us? Good for whom?
Good of you? Good for us? Good for whom?
