Peso can absorb near-term shocks – BSP governorBangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. yesterday said the peso has the leeway to “absorb” exchange rate shocks coming from the external sector. Tetangco said risks that could “unsettle” the local market in the short-term through financial market volatility include the policy actions of advanced economies such as the US, specifically the timing of the Federal Reserve’s next interest rates increase. The rate movement in Japan and Europe are also closely watched. “As the markets digest any pronouncements from advanced economies’ policy makers, we will continue to experience a toggling between ‘risk on’ and ‘risk off’ market behavior, which always creates ‘noise’ in financial markets,” said Tetangco. These shifts could further slow Chinese growth.

Source: Manila Bulletin September 06, 2016 14:18 UTC