THE Philippine peso climbed Thursday, 24 hours after S&P’s Ratings Services elevated its credit standing on the government to a level below investment rate, while majority of the country’s Asian neighbors eased prior to the ECB’s grade verdict.
Standard & Poor’s enhanced the Philippines’ long-term autonomous credit grade from double-B to double-B+ with a firm forecast late Wednesday, a decision that’s seen to strengthen currency trades and bonds and hoist an equity sector that’s reached new highs during the past few days.
According to European bank traders in Manila, the market is keeping a cautious attitude as they doubt the central bank’s agent financial institutions of backing the greenback and after a dollar-short pressure late yesterday.
This helped the currency increase 0.59 percent to 41.601 versus the US greenback Thursday, though the unit shed some of its gains on concerns regarding the central bank’s dollar-acquisition intercession. The currency remained at 41.68 by 0311 GMT.
The dealers said that most traders are currently just slacking on various offers and not attempting to send the Philippine currency and the greenback lower.
Many analysts and currency experts pointed out that the Philippine peso has apportioned the credit upgrade, but the increase can be considered as a further enhancer for the country’s local currency.
Shares in Manila increased 0.29 percent, outplaying Asia-Pacific stocks outside of Japan that stumbled 0.49 percent; the Philippine’ 3-year government bond output inched one basis point to 3.960 percent.
US greenback peaks prior to central bank summit
Meanwhile, the US greenback peaked versus the British Sterling and the euro on Thursday, being hoisted ahead of the highly-anticipated ECB interest rate reduction and more financial assistance from Bank of England during their policy discussions later in the day.
The greenback index on the ICE, which gauges the USD versus a host of other major currencies, hit the 82.162 mark, from 82.131 in Wednesday’s late North American sessions.
The Bank of England and the ECB are set to post their interest rate resolution, Thursday. Analysts generally anticipate the central bank to reduce its major rates from one percent to support the weakening economy of Europe.
The British sterling hit the $1.5592 level, from $1.5605 during late Wednesday’s North American trade. The USD, versus the yen, bought 79.77 Japanese currency, from 79.83 yen during the same day’s late North American trade.
The euro currency was being traded at $1.2528, merely down from $1.2533 in late sessions the other day. Experts expect BOE to bolster the volume of its quantitative-alleviation program by an additional $78.4 billion, bringing the total to to 375 billion euros.