Philippine peso weakens but in tight range vs dollar after shopping mall blast |
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Fri, 19 Oct 2007 08:37
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MANILA (Thomson Financial) - The Philippine peso lost some ground on Friday but was trading within a narrow range against the US dollar following an explosion at a shopping mall in the capital's financial district of Makati.'The market is doubly cautious following reports of the explosion. The peso is just trading in a tight range so far,' said a Manila-based trader, who asked not to be named.In mid-afternoon trading, the peso was quoted at between 44.09 and 44.25 to the dollar, after closing at 44.05 on Thursday.The explosion, which killed four people based on early reports, was initially blamed on a gas leak at a restaurant inside the Glorietta mall.But national police chief Avelino Razon said the blast was 'probably caused by a bomb.''There was a knee-jerk reaction but banks are not making any big moves because they think that the peso's uptrend is intact,' the trader said.'Caution is advised as the G7 meeting (of finance ministers) is to be held this weekend. Traders expect the G7 to come out with statements that may influence forex trading,' another dealer said.The peso has gained around 11 percent so far this year, making it one of the best-performing Asian currencies, thanks largely to the steady inflow of remittances from overseas-based Filipinos, foreign investments and export earnings.enrico.delacruz@thomson.comed/jgCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Blast hits Philippine financial district 