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Philippines will curb speculators to fight peso swings

Staff Writer |
The Philippine central bank will take all actions necessary to deal with speculative activity to prevent sharp swings in the foreign exchange market, its governor said on Friday, as the peso hit a more than 12-year low against the dollar.

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Consumer prices have been under pressure due in part to the peso's weakness, sparked by fears of a widening Philippine current account deficit and an escalating Sino-U.S. trade war.

Bangko Sentral ng Pilipinas Governor Nestor Espenilla said policymakers will take "strong immediate action using the full range of instruments in its toolkit" to manage inflation, which quickened to its fastest pace in nearly a decade in August.

"The follow-through actions will also address other threats to higher inflation such as excessive exchange rate volatility," Espenilla told reporters in a mobile phone message.

The Philippine peso touched 53.975 to the dollar during Friday's trading, its lowest since June 2006.

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