Central bank intervenes to cap peso - traders

SINGAPORE - The Philippine central bank intervened on Tuesday to cap the rising peso, which was boosted by the strong presidential election showing of Benigno Aquino and a massive euro zone rescue package, traders said.

The peso jumped just over 1% to 45.01 per dollar, but its strength was tempered by the central bank's dollar-buying intervention.

But traders still expect the unit to break the 45 level soon.

"They (the central bank) just want to smooth out volatilities in the dollar/peso. Eventually if dollar/Asia continues to trade lower, 45 should be tested," said a trader in Manila.

Aquino had just over 40% of the votes in the election, according to figures released on Tuesday morning.

Updated as of 05/11/2010 2:24 PM
Reuters

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