BSP sees no need for policy move to stem peso's slide

Posted at 02/04/2014 12:28 PM | Updated as of 02/04/2014 12:35 PM

MANILA - The Philippine central bank will not resort to drastic policy action to stem the peso's slide, but it will continue to be present in the foreign exchange market to smoothen sharp swings in the currency, Governor Amando Tetangco said on Monday.

The peso's weakness so far this year was in line with the movement in other emerging market currencies hammered by selling from global investors worried about the pace of reduction in U.S. monetary stimulus.

"There is therefore no real need, at this time, for any drastic policy action to address these 'short-term' market portfolio realignments," Tetangco told Reuters in an email ahead of a policy meeting on Feb. 6.

"The BSP (central bank) will, however, continue its policy of strategic presence in the FX market to curb excessive rate movements," he said.

The central bank is widely expected to leave its key policy rate on hold at its meeting on Thursday.