MANILA -- A ranking executive of the Bangko Sentral ng Pilipinas (BSP) said negative perception of the market is driving the weakness of the Philippine peso.
BSP Deputy Governor Diwa Guinigundo on Monday said “the country’s strong macroeconomic fundamentals have never changed.
u201dThey have remained stable and robust. But because of perceived risks which may not really be justified and continuing uncertainty about the unknown in the calculus of foreign exchange traders, they have embraced negative sentiment rather than focus on fundamentals,” he said.
u201dNo even the real interest rate differentials which are rather manageable could justify the sharp fall of the peso except the negative perception of the market,” he added.
The local unit finished Monday at 48.25, the weakest after the 48.33 in September 15, 2009.
Monetary officials and economists alike are one in saying that anticipations for the eventual increase in the Federal Reserve key rates is the primary reason for the volatilities in Asian financial markets to date.
But other factors such as this week’s meeting of the Organization of Petroleum Exporting Countries (Opec) in Algeria and the first official presidential debate in the US are contributing to the volatilities.
Some analysts said results of the November 2016 national polls in the US is a cause of concern for businessmen since both candidates back policies that would give more opportunities to US residents. (PNA)