Tetangco: peso won't be affected by hostage tragedy


Posted at Aug 24 2010 06:00 PM | Updated as of Aug 25 2010 02:00 AM

MANILA, Philippines - The cental bank of the Philippines said the local currency or the peso is not likely to be affected by the tragic hostage-taking on Monday.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said on Tuesday the markets are not expected to react negatively to the 12-hour hostage drama that took the lives of 8 Hong Kong residents.

He said that foreign capital inflows into the country will continue to be strong.

"That was a very unfortunate incident but an isolated event, and the markets will see through that and it should not have a significant effect on the market in general," Tetangco said.

On Tuesday, the peso closed at 45.53 against the US dollar, falling by 47 centavos from the previous day's close of 45.06.

Tetangco said the peso's decline is not expected to sustained.

He said portfolio and other foreign investments to the country will continue to increase, as global investors seek investment opportunities in emerging Asian markets like the Philippines.

From January to July, central bank reported net inflow of foreign portfolio investments reached $701 million, up by 160% from $265 million in the same period last year.