Forex News JPMorgan says Philippine central bank's decision to make surprise 50bp hike in key interest rate to work favorably for monetary authority's inflation fighting credentials, expecting key borrowing rate at 6.00% by end-2008 from current 5.75% and a tightening in liquidity via banks' reserve requirements. Adds rate decision may cause unwinding of long USD positions by banks. "Overall, the technical environment appears conducive for a near-term USD/PHP reversal. Outstanding positions appear net USD long, carry attraction to short USD/PHP is high," says JPMorgan. USD/PHP ends at 3-week low 45.03 yesterday.
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