Google

ASEANAFFAIRS
Sign up | Log in

    ASEAN PROFILES

  ASEAN KEY DESTINATIONS

Home  >>   Daily News  >>   Philippines News  >> Economy  >> Peso sinks on Fed decision to cut bond purchases, but 4Q GDP trims losses
NEW UPDATES Asean Affairs  3  February 2014  



Peso sinks on Fed decision to cut bond purchases, but 4Q GDP trims losses

The peso slipped against the dollar after the US Federal Reserve trimmed its bond purchases by another $10 billion, sending chills to emerging markets that were already enduring volatility from a host of reasons.
 
However, the steady growth of the Philippine economy in the fourth quarter of 2013 gave the local currency platform to trim losses against the greenback.
 
The local currency lost 11.5 centavos to 45.32:$1 from 45.205 Wednesday. It opened at 45.33 before trading between a low of 45.42 and a high of 45.275 during the session.
 
The weakness is mostly sentiment-driven following Fed's taper announcement overnight, Metropolitan Bank & Trust Co. research head Ildemarc Bautista told GMA News Online.
 
"People are just reacting to the Fed taper. Markets might be misreading the Fed's action as tightening when in reality it's still pumping liquidity into the system," he said.
 
Fed chairman Ben Bernanke, who hands the central bank reins over to vice chair Janet Yellen on Friday, announced a further $10 billion reduction in its monthly bond purchases as it stuck to a plan to wind down the extraordinary stimulus despite recent turmoil in emerging markets, Reuters reported.
 
"We have to find out how to control sentiment. Dollars are still coming in even if demand for the dollar will wane," Bautista said.
 
Following Fed's announcement, corporates bought dollars, a trader at a local bank said in a separate phone interview.
 
Also Weighing down on investor sentiment was China's lower manufacturing production for January, the trader  added.
 
The Markit/HSBC final manufacturing PMI – a measure of Chinese manufacturing sector activity – for January dipped to 49.5 from December's 50.5, the first deterioration in six months and a reading below 50 indicates a contraction, Reuters reported.
 
However, the trader noted the peso received a little help when government announced the economy grew at a decent pace in the fourth quarter.
 
"Some took profits on GDP (gross domestic product) announcement and also because of the long weekend," the trader said.
 
The Philippine Statistics Authority (PSA) reported the GDP grew by 6.5 percent in October to December despite a series of natural calamities, placing the full-year 2013 output as growing by 7.2 percent.
 
"Some investors are now starting to cherry-pick markets, distinguishing the good emerging markets from the bad," the trader said. – VS, GMA News



Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates
Contact: marketing@aseanaffairs.com

Comment on this Article. Send them to  your.views@aseanaffairs.com

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
 
or
submit your comment in the box below



 
Today's  Stories    February 3, 2014 Subsribe Now !
• Govt calls on Election Commission to hold new polls within one week Subcribe: Asean Affairs Global Magazine
• One airline is enough: report
• Indonesian banks ready for new real time settlement system
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• First 15 Filipino construction workers due in Singapore in March
• Peso sinks on Fed decision to cut bond purchases, but 4Q GDP trims losses
Asean Analysis                    3 February  2014 Advertise Your Brand
• Asean Analysis-February 3, 2014
Indonesia bids to woo carmakers away from Thailand
Asean Stock Watch     30 January 2014
• Asean Stock Watch-January 30, 2014
• Asean Analysis-January 31, 2014
U.S. Spying a Threat to Global Climate Deal

The Biweekly Update
• The Biweekly Update  January 24, 2014

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan

ASEAN  ANALYSIS

This year in Thailand-what next?


AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 


Name

Name


Email

Email



1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand
asean@aseanaffairs.com