The Philippine Peso has risen to an 8 year high against the US Dollar in an early trade on Thursday, reflecting the weakness of the US Dollar. concerns. The Bangko Sentral ng Pilipinas (Central Bank of the Philippines) has yet to intervene in the market since Tuesday when it established a 'feeble dollar-buying defense', according to traders at Metropolitan Bank & Trust Co. The rising Philippine Peso alongside other South East Asian currencies have been benefited by the slowing US economy. The Philippine Peso was the strongest Asian currency in the year 2007, but is currently lagging in 2008.
''The market is continuing its consolidation phase. There are bouts of bargain hunting but it is still not as strong as it could have been compared to the other markets that have rallied recently,''said Jose Vistan, research director at AB Capital Securities.
The Philippine Peso's rise comes a day before protesters against President Gloria Macapagal Arroyo stage another street protest to demand her resignation. The Pangulo of the Philippines has again been subject to political controversy where she and and ally have been implicated.
In forex trading, the Philippine Peso has risen to an 8 year high against the US Dollar. The rising Philippine Peso rose to 40.25 per US Dollar in morning trade Thursday, its strongest level since January. It has since hovered around 40.45 Pesos per Dollar. The Philippine Peso's rise has been supported by a strong regional market which have embraced the prospects of further interest rate cuts by the US Federal Reserve in an attempt to avert a recession. This has encouraged traders to invest in the emerging Asian markets which hold high yielding assets.
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