Peso Still In Vicinity Of Record Lows Despite Medalla's Pledge To "Act Decisively"

Spot USD/PHP last changes hands at PHP58.967, little changed on the day. The PHP59 figure provides the initial topside target, while bears look for losses past Oct 5 low of PHP58.395. USD/PHP 1-month NDF last +0.050 at PHP59.120, with bulls keeping an eye on Sep 28 high of PHP59.460 and bears looking for losses past Oct 5 low of PHP58.520.

• Bangko Sentral ng Pilipinas Governor Medalla assessed that the peso's depreciation is accentuating inflationary pressures and "strengthens the case to act and to act decisively." Medalla noted that at the moment monetary policy settings remain accommodative, adding that bringing inflation back to the target range is the central bank's "paramount" focus.
• The peso has been testing record lows over the past two weeks, while a record trade deficit reported in August highlights the risk of notable pass-through from weaker exchange rate to domestic inflation.
• Offshore investors sold a net $5.56mn in Philippine equities Wednesday, while the PSEi was marginally higher. Benchmark stock index operates near unchanged levels as we type.