Peso recovers slightly after nearing 18-month low

MANILA, Philippines - The Philippine peso traded near an 18-month low before closing on a rebound as volatile trading prevailed with investors remaining cautious over liquidity and credit concerns affecting financial markets worldwide. The peso was down 0.8 percent to P47.81 against the dollar early Tuesday, close to the P47.90 to a dollar rate in April 13, 2007. The local market woke up with reports of another massive stocks sell-off in the United States amid worries that it would take some time before $700-billion bailout package actually eases the pressure on financial markets. "The panic button is pressed on global markets. It (bailout) is a continuing saga. It is not a quick process," said Marcelo Ayes, Rizal Commercial Banking Corp senior vice president. Another Manila-based trader said the central bank was seen participating in the currencies market but the amount it traded was "not that big." "After the peso hit the resistance level of P47.81, it was already the market that was driving it," the trader said. The pressure on the peso eased after hitting the intra-day high. The currency closed three centavos higher at P47.40 versus the greenback. The market saw an exchange of $887.5 million worth of currencies. Ayes said volatile trading will likely continue until remittances from overseas Filipinos come in full blast by the middle of the month until the Christmas season. - GMANews.TV