Philippine Peso Has Best Week in Three Months on QE3 Optimism
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The Philippine peso completed its biggest weekly gain in almost three months and government bonds rose as speculation the U.S. plans a third round of quantitative easing bolstered demand for higher-yielding assets.
Federal Reserve Chairman Ben S. Bernanke said Aug. 31 he doesn’t rule out more monetary easing in the world’s biggest economy. A European Central Bank plan to tackle the region’s debt crisis with unlimited bond purchases spurred risk-taking today, helping emerging markets draw funds. Bangko Sentral ng Pilipinas will keep its benchmark interest rate unchanged at 3.75 percent on Sept. 13, according to 11 out of 13 economists surveyed by Bloomberg. Two expect a 25 basis point cut.