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Peso Near Record Lows, Medalla Advises Against Buying USD Well Ahead Of Use

PHP

Spot USD/PHP sits at PHP58.995, within touching distance from record highs (PHP59.001), after a notable equity outflow on Tuesday. USD/PHP 1-month NDF last seen +0.080 at PHP59.380.

  • Foreign investors dumped Philippine stocks Tuesday as local financial markets re-opened after a pause caused by adverse weather conditions. The PSEi tumbled into bear market territory and remains heavy this morning, posting new cyclical lows.
  • Damage wrought by typhoon Noru on Philippine rice fields is fuelling concerns over continued food shortages, which could accentuate existing price pressures.
  • BSP Gov Medalla sought to discourage buying dollars way before use as he warned that it would add pressure to the beleaguered peso. He stopped short of announcing any measures to that effect, noting that the central bank will not raise any barriers to dollar purchases for domestic companies.

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