USD/PHP: PHP steadies on foreign inflows to the equity market
USD/PHP: Foreign Inflows and Trade Balance Support PHP
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The PHP was on the backfoot early in the month against the dollar. But it rallied later on as foreign inflows to the local equity market helped provide support, while a narrowing trade deficit also helped ease selling pressure on the currency.
Bangko Sentral ng Pilipinas (BSP) Governor Medalla extended his pause in June, keeping rates at 6.25%. He was replaced by Dr. Remolona, a current Monetary Board member, who assumed the role of Governor in July.
The PHP could eventually face pressure should the interest rate differential narrow further with the Fed poised to hike in July.