Philippine peso extends gains vs dollar after Estrada conviction - UPDATE |
|
|
|
Published
:
Wed, 12 Sep 2007 05:33
|
MANILA (Thomson Financial) - The Philippine peso continued to strengthen against the US dollar at the end of morning tradeWednesday following the conviction of former president Joseph Estrada for corruption.The peso which opened at 47.00 to the dollar, hit a high of 46.80 in morning trading in knee-jerk reaction to the guilty verdict handed down by the anti-graft court shortly after the currency market opened. The pair closed at 47.12 on Tuesday, the lowest level for the peso in four months.But some analysts said the local currency's appreciation was also due to more stable regionalfinancial markets.'I don't really attribute the peso's rise to the Estrada verdict,' said Philip Wee, currency strategist of DBS Bank in Singapore. 'It is more in reaction to US stocks which did well overnight.''Fundamentally, the peso is still on track, it should really appreciate, but today, I think it is going up - but pretty much at the whims of risk aversion,' said Wee.The Philippine military had been on high alert since Tuesday, a day before the verdict was handed down, saying pro-Estrada forces may become unruly if the former moviestar-turned-president is found guilty on charges of corruption.'There is volatility right now, but the verdict doesn't seem to have much impact,' said Thio Chin Loo, currency strategist at BNP Paribas.'I think that despite the tension, security measures are in place and the strong fundamentals attached to the peso such as strong inflows and well-balanced economic growth are supportive of the Philippine peso. There is not much to worry about right now,' said Loo.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.rocel.felix@thomson.comrf/msCOPYRIGHTCopyright 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.
|
|
|
|
Print this Story
Former Philippine leader gets life for corruption 