As crude oil hovered above $127 per barrel in the global markets, the peso closed at its intra-day low of 43 after opening near the day’s high of 42. Currency dealers said the BSP unloaded US dollars to stem the peso’s fall, accounting for over $100 million out of $715 million worth of trades at the Philippine Dealing System, the spot foreign exchange market. The currency of South Korea, itself a heavy oil importer, has become the weakest performer this year due to perceived reluctance of its central bank to increase interest rates. Traders said the peso’s fall at the spot foreign exchange market was also affected by the weak sentiment of offshore investors in the “gray,” or foreign exchange non-deliverable forwards (NDF), market. The BSP recently issued a memorandum requiring all banks and trust entities authorized to engage in NDF transactions to report their transactions with offshore investors on a weekly basis. read more
[Tags]currency, oil, exchange, foreign, global, market, forex news[/Tags]
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