Feb. 12 (Bloomberg) -- The Philippine peso gained the most in more than four months after new Federal Reserve Chairman Janet Yellen said further reductions in monetary stimulus will be done in “measured steps.”
The peso reached its highest level in almost a month after Yellen said in her testimony yesterday to Congress that only a “notable change” in U.S. economic outlook would prompt policy makers to slow the pace of tapering. The Fed has emphasized continuity of policy and markets will be “well-served if they are circumspect,” Philippine central bank Governor Amando Tetangco said today in a mobile-phone message.
“Yellen’s message calmed emerging markets including the Philippines,” said Lito Mercado, head of trading at Rizal Commercial Banking Corp. in Manila.
The peso appreciated 0.5 percent to 44.84 per dollar in Manila, the biggest advance since Oct. 3, prices from Tullett Prebon Plc show. The currency touched 44.825 today, the highest level since Jan. 14.
The yield on the government’s 11.375 percent bonds due October 2023 fell one basis point, or 0.01 percentage point, to 4.33 percent, according to noon fixing prices from the Philippine Dealing & Exchange Corp.
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