Negative sentiments fuel PHP weakness – BSP execMANILA — A ranking executive of the Bangko Sentral ng Pilipinas (BSP) said negative perception of the market is driving the weakness of the Philippine peso. BSP Deputy Governor Diwa Guinigundo on Monday said “the country’s strong macroeconomic fundamentals have never changed. But because of perceived risks which may not really be justified and continuing uncertainty about the unknown in the calculus of foreign exchange traders, they have embraced negative sentiment rather than focus on fundamentals,” he said. “No even the real interest rate differentials which are rather manageable could justify the sharp fall of the peso except the negative perception of the market,” he added. The local unit finished Monday at 48.25, the weakest after the 48.33 in September 15, 2009.

Source: Manila Bulletin September 27, 2016 02:15 UTC