The peso fell to a new eight-year low against the greenback on Wednesday, but the central bank noted the local currency was tracking the global strength of the US dollar. The central bank said it is still keeping the policy of allowing market forces to determine the exchange rate. “We are sticking to our current foreign exchange policy of allowing market forces to basically determine the exchange rate,” he added. Tetangco noted monetary authorities do not want to see the exchange rate moving out of line, would like as little volatility as possible in exchange rate movements to avoid “disanchoring” expectations. “We also look at how the other regional currencies are moving and compare that with how the peso peso is moving and what’s happening in the US dollar, what’s happening in the United States,” he said.

Source: Manila Times November 23, 2016 09:50 UTC