Peso falls to 45 a dollar

Manila Standard Today11-07-2014

THE peso closed at a seven­month low of 45 against the US dollar on Thursday, as investors continued to seek the safety of the greenback after the US Federal Reserve, decided to end its asset-purchase program.

The peso lost 0.1 percent of its value from Wednesday's closing of44.97 against the dollar. It traded between 44.98 and 45.12, before closing at 45 per dollar, the weakest since March 27 when it settled at 45.04.

Global funds pulled a combined $4 billion in October from stocks in India, Indonesia, the Philippines, South Korea, Taiwan and Thailand, after the US Fed announced the end of its stimulus program.

Reports that a property bubble was forming also weighed on sentiments. Record bids for two plots of land in Bonifacio Global City lifted lot prices to a 17­year high.

The 1,600­ square ­meter (17,200 ­square ­foot) site in the former military camp of Bonifacio fetched P732.8 million ($16.3 million) and P800 million each at a government auction in September.

That was a record half-­a-­million pesos per square meter, about 80 percent higher than the previous government land sale in the area, according to the local associate of Savills Plc.

The "Philippines is at risk for an asset bubble," said Antton Nordberg, a property analyst at KMC MAG Group Inc., Savills's associate in the country. "The price of the land is just too high."