Philippine central bank says peso will remain market determined

[MANILA] The Philippine central bank is prepared to act to manage excessive currency volatility, its governor said, even as he reiterated policymakers will let market forces determine the exchange rate.

Amando Tetangco, governor of the Bangko Sentral ng Pilipinas (BSP), said the central bank will not go against the fundamentals driving the peso but it will "smoothen very sharp fluctuations in the exchange rate." "What we do is basically to make sure that the adjustments, whether upward or downward, are not destabilising," Mr Tetangco told Reuters late on Tuesday.

The Philippine peso hit a 4-1/2 month low on Tuesday, tracking regional peers. It opened slightly stronger to the dollar at 47.22 on Wednesday compared with its 47.32 close the previous day.

REUTERS