BSP assures public on forex, stocks movements

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The Bangko Sentral ng Pilipinas (BSP) assured the public about the recent movements of the Philippine peso and the stock market

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“The recent movements in both the FX [foreign exchange rate]and stock markets are part of investor reassessment of global risk,” BSP Governor Amando Tetanco Jr. said in a statement on Thursday.

The Philippine peso continues to weaken as it closed P43.10 to a dollar, while the Philippine Stock Exchange closed at 6,114.08 points on Thursday, dipping 6.75 percent, or 442.57 points over Tuesday’s finish.

Tetangco also assured the public that the central bank continues to be watchful of market conduct.

He said that the BSP continues to monitor price movements in the foreign exchange market to ensure these are not excessive, and remain consistent with overall price and financial stability objective.

Moreover, Tetangco added that inflation expectations continue to be well anchored and underlying fundamentals remain sound.

In an earlier statement, the BSP governor said that markets tend to test how far daily volatilities can be stretched.

“The fundamentals continue to support the peso. Daily moves won’t significantly impact inflation forecast, but a sustained move in either direction would,” he added.

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