Philippine Peso at 63.50 Per Dollar Might Be Okay, Governor Says
The Philippine peso at 63.50 against dollar might be okay as long as the decline is measured and not inflationary, Governor Eli Remolona said.
Bangko Sentral ng Pilipinas remains active as usual in the foreign-exchange market to curb volatility while not seeking a specific level, Remolona said in an interview with local broadcaster One News PH. The governor also said officials are considering raising the benchmark interest rate before the next scheduled policy meeting on June 18.
The peso , which touched a record-low 61.75 this week, rose as much as 0.2% to 61.46 on Friday.
The Philippines is among the hardest hit in Asia from the surge in oil prices as the nation imports almost all of its fuel requirements. Higher crude prices are boosting inflation and threaten to widen the nation’s current-account deficit.
“More than one hike is needed to bring things back into balance,” said Philip McNicholas , Asia sovereign strategist at Robeco Group in Singapore. “Action would need to be more aggressive than the market expects to truly bring an end to the pressure on the peso.”
