Philippine peso at 4-mth lows ahead of Estrada verdict, intervention seen UPDATE |
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Tue, 11 Sep 2007 10:29
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MANILA (Thomson Financial) - The Philippine peso fell Tuesday to its weakest level against the US dollar in four months as market players anxiously awaited the court's verdict in the six-year trial of former president Joseph Estrada for corruption, with the central bank seen in the market selling dollars to defend the peso.Concerns that the US economy, the biggest market for Philippine exports, may be heading into a recession also weighed on the local currency.The peso closed at the day's low of 47.12 to the dollar, on trade of 666.0 million dollars. It was the peso's weakest finish since May 11, when it settled at 47.17. On Monday the peso closed at 46.70.'The dollar closed higher at 47.12 as short-covering continued in the afternoon session...when resistance levels at 46.80 and 47.00 were breached,' a dealer with Metropolitan Bank & Trust Co said.'The failure of the central bank to provide immediate relief at 46.80 pressured players to cover short dollar positions aggressively. The central bank was suspected to have sold dollars at the 47.07-47.12 area,' the dealer said.The Philippine military went on high alert Tuesday, a day before the verdict is handed down, saying pro-Estrada forces may become unruly if the former movie star-turned-president is found guilty on charges of corruption.Despite his ouster through a military-backed popular revolt in 2001, Estrada still enjoys the support of many poor Filipinos, while his successor Gloria Arroyo suffers from low popularity ratings.enrico.delacruz@thomson.comed/jg/ed/zrCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Philippine peso hits four-month lows vs US dollar ahead of Estrada verdict 