Peso strengthens ahead of US Fed Bernanke's speech

The peso strengthened against the greenback on Wednesday as currency dealers unloaded dollar holdings ahead of US Federal Reserve chairman Ben Bernanke's speech. 

 

The local currency gained six centavos to 43.43:$1 from 43.49 Tuesday. Volume reached $933.2 million from $992.1 million. 

 

“Dealers were lightening up positions ahead of Bernanke's speech,” a trader at a local bank said. 

 

Last week, Reuters reported that Bernanke would deliver a speech on July 10 in Cambridge, Massachusetts on the US central bank's policy record in the past 100 years and its future prospects. 

 

Investors have been sensitive on Fed pronouncements and US data after Bernanke heralded easing of stimulus measures that eroded the appeal of emerging market currencies like the peso. 

 

In a separate interview, a second trader said local dealers have accumulated dollars following the good US jobs data released over the weekend. “There were position adjustments away from long. 

 

“Heavy selling of dollars accumulated after good US jobs data was seen,” he added. 

 

Better-than-expected Philippine exports data also attracted more dollar placements into the country. 

 

“The exports data released by NSO also cheered the peso up,” said the first trader. 

 

The National Statistics Office reported that Philippine exports registered a  0.8 percent decline, better than economists' expectations of a 15 percent contraction for the month and an easing of the 11.1 percent drop in April.

 

The Bangko Sentral ng Piilpinas bought dollars, which helped offset gains by the peso. Both traders observed the Bangko Sentral bought $200 million to $300 million at the session's high of 43.32:$1  until the market closed. 

 

Tracking Bernanke's announcement, traders see the peso moving within the 43.30 to 43.75 per dollar range Thursday. — VS, GMA News