May 28 (Bloomberg) -- The Philippine peso rose the most in almost two months as Greek opinion polls showed parties in favor of supporting the European bailout gaining support among voters, stoking investor appetite for emerging-market assets.
New Democracy was placed first in all six opinion polls published on May 26 as campaigning continued for next month’s general election. The peso touched a four-month low late last week, prompting central bank Governor Amando Tetangco to say authorities will curb excessive currency movements if needed.
“Polls out of Greece are showing the more conservative party is slightly leading, so there’s better sentiment in Asian currencies,” said Saktiandi Supaat, head of foreign-exchange research at Malayan Banking Bhd. in Singapore.
The peso appreciated 0.5 percent to 43.545 per dollar in Manila in the biggest advance since April 2, according to Tullett Prebon Plc. The currency reached 43.96 on May 25, the weakest level since Jan. 16. It may trade between 43.75 and 44.00 this week, Supaat predicted.
One-month implied volatility in the currency, a measure of exchange-rate swings used to price options, fell 25 basis points, or 0.25 percentage point, to 7.25 percent. It’s up from 4.5 percent at the end of last month.
“In a period of heightened uncertainty, market participants take on defensive stances,” Tetangco said on May 25. “This trend may continue. But when more normalcy settles, we could see a move back to assets of emerging-market sovereigns and corporates that have shown fair resiliency.”
The yield on the Philippines’ 5.75 percent bonds due November 2021 held at 5.55 percent, according to prices from Tradition Financial Services.
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