NEWSFLASH

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PESO GAIN CONTINUES

Manila, Jan. 21, 1998 - The peso continued to trade firmer at the Philippine Dealing System yesterday, surging to as high as P40.9 to the dollar in morning trade before closing at P41.10=$1, for a weighted average of P41.00 to the dollar.

Trading was thin, totalling only $81 million, showing that the demand experienced last week has died down.

Meantime, one of the country's top economists predicts that the peso, still undervalued, will continue to surge. University of Asia and Pacific senior vice president Bernardo Villegas said that he was confident the peso would stay closer to P35 than to P40 per dollar for the rest of the year.

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