PESO REBOUNDS, GAINS 71 CENTAVOS
Manila, Oct. 10, 1997 - The Philippine peso surged against the dollar yesterday, gaining 71 centavos for a weighted average of P34.852 to the dollar from P35.565/dollar Wednesday.
The peso strengthened early in the day to P34.129 to $1.
The Central Bank admitted having intervened during the early morning trade. Mark Boyne, senior vice president for treasury of Hong Kong Bank, said the symbolic intervention in the foreign exchange market has achieved its purpose of calming the market and quelling speculative activity.
Boyne also noted that speculative activities were controlled by the Central Bank's announcement of conditions on the use of its repurchase/lending facility and its tightening of rules on the overbought forex position of banks.
He expressed optimism that the peso would settle at a very strong P31.50 to P32.50 to the dollar by the end of the year.
Reported by: Sol Jose Vanzi
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