Peso ends week on positive note

The peso sustained a recovery Friday on reports allaying fears of the US Federal Reserves scaling back its $85-billion bond-buying stimulus, dubbed as quantitative easing (QE).  

 

A dollar fetched P42.81, a 29-centavo from P43.10 Thursday. 

 

"The strengthening is mostly a reaction to reports that the market has priced in the reduction to QE too early and that the Fed is unlikely to unwind stimulus in the short-term," a trader at a local bank said.  

 

A second trader noted markets were calmed on lack of further hints that the Fed may scale back its stimulus measure. 

 

Various US-based newspapers like the Wall Street Journal and wire agencies reported that analysts are now considering that the Fed may push back any unwinding of the program. 

 

The Fed is holding a policy meeting next week.

 

"Some analysts said if the Fed does not hint at an imminent exit from its quantitative easing next week, the market could see a relief rally," according to a Reuters report. 

 

Speculations of the US scaling back stimulus measure have fueled a sell-off in global equities, emerging markets, risky bonds and commodities, weakening Asian currencies against the greenback. 

 

The peso hit 43.2:$1 on Tuesday, its lowest in a year, amid a bloodbath in regional markets that saw ASEAN equities plunge. — VS, GMA News