MNI BRIEF: China To Boost Consumer Spending, New Industries

MNI BRIEF: China Enhances Fiscal Response To Boost Economy

MNI BRIEF: China To Promote Migrates' Rights, Reform Hukou System

MNI: PBOC Net Injects CNY57 Bln Via OMO Fri; Rates Unchanged

MNI: PBOC Sets Yuan Parity Higher At 7.1315 Fri; -0.52% Y/Y

CHINA PBOC CONDUCTS CNY59 BILLION VIA 7-DAY REVERSE REPOS FRI

Asia Sovs Steady, Philippines BoP Swings To Deficit

Japan Jun Core CPI +2.6% Y/Y; Energy Price Up

MNI BRIEF: Japan June Core CPI Rises 2.6% Vs. May +2.5%

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

BSP Has FX Reserves To Curb Overreaction In Local FX - Gov Medalla

PHP

USD/PHP is range bound in the first part of trade today, last tracking in the 55.55/60 region, slightly above yesterday's closing levels (55.54). Some support was evident sub 55.50 late yesterday, although PHP has been fairly immune to the recent USD rebound. We sit comfortably below recent highs, with the 200-day MA at 56.11.

  • Comments from the BSP Governor have crossed the wires today, with the Governor stating BSP has the FX reserves to use if the local FX market overreacts. Medalla also stated that the BSP won't cut rates faster than the Fed as we progress through 2023.
  • Also, late yesterday the BSP stated that it will expand its Currency Risk Protection Program (CRPP) to aid hedging and reduce pressure on spot PHP. This comes after the Deputy BSP Governor spoke over the weekend, stating that FX rates were being monitored and that the FX rate was likely to be broadly stable in the medium term.
  • These actions/comments suggest a renewed focus on PHP FX trends. It comes after the step rise through the first part of April (+3.4%) in USD/PHP, but in recent sessions we have recouped around 1.5% of this rally. BSP is likely to be mindful of renewed FX underperformance undermining efforts to return inflation to target.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.