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Philippine Peso Advances Most in a Week as Cyprus Concern Cools

Monday, 18 Mar 2013 11:48 PM

March 19 (Bloomberg) -- The Philippine peso climbed by the most in a week as Asian stocks rose after European policy makers signaled flexibility in applying a levy on Cypriot Bank deposits. Government bonds increased.

Euro-area finance ministers told Cyprus to raise 5.8 billion euros ($7.5 billion) from depositors as a condition for securing loans, with Parliament meeting to vote on the measure later today. The Philippines will issue balance of payments figures for February today after posting a surplus of $2.04 billion in January.

“Risk aversion seems to be contained as many are beginning to realize that Cyprus needs to remedy its debt problem,” said Vishnu Varathan, an economist at Mizuho Corporate Bank Ltd. in Singapore. “The Philippine peso is likely to remain well- supported. Its balance of payments of over $2 billion is fairly strong.”

The peso appreciated 0.1 percent to 40.665 per dollar as of 10:51 a.m. in Manila, Tullett Prebon Plc prices showed. It was the biggest gain since March 12. The currency dropped 0.3 percent yesterday, the most since Jan. 28, amid a global slump in stocks on concern the unprecedented measure by Cyprus will reignite Europe’s debt crisis.

One-month implied volatility in the peso, a gauge of expected moves in the exchange rate used to price options, fell two basis points, or 0.02 percentage point, to 3.71 percent.

The yield on the 6.125 percent 25-year bonds dropped three basis points to 4.05 percent, the lowest level since the debt was sold in October, according to Tradition Financial Services. The government will sell 25 billion pesos ($615 million) of 2033 notes today.

--Editors: Simon Harvey

To contact the reporter on this story: Elffie Chew in Kuala Lumpur at echew16@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net

© Copyright 2017 Bloomberg News. All rights reserved.

 
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March 19 (Bloomberg) -- The Philippine peso climbed by the most in a week as Asian stocks rose after European policy makers signaled flexibility in applying a levy on Cypriot Bank deposits. Government bonds increased.Euro-area finance ministers told Cyprus to raise 5.8...
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Monday, 18 Mar 2013 11:48 PM
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