BSP open to entering forex market if needed

Posted at 01/07/14 2:43 PM

MANILA - The Bangko Sentral ng Pilipinas (BSP) is prepared to intervene in the foreign exchange market to smoothen excessive swings, its governor said on Tuesday, as the peso hovered near 4-month lows.

The weakness in the peso was mainly due to the looming tapering of the US Federal Reserve's stimulus program, market uncertainty, and rebalancing of investors' portfolios,

Amando Tetangco told reporters, adding authorities were watching markets to see if policy adjustments were necessary.

"We follow a flexible exchange rate policy. We have the option to participate to prevent excessive sharp movements in the rate," Tetangco said, adding the central bank was prepared to enter the market if needed.