Peso surges to two-month high vs dollar
THE PESO closed at a two-month high versus the greenback on Friday on profit-taking and as the country’s balance of payments (BoP) gap narrowed in March.
The local unit closed at P48.10 per dollar on Friday, stronger by 21.5 centavos than its P48.315 finish on Thursday, data from the Bankers Association of the Philippines showed.
This was its strongest in more than two months or since its P47.93-per-dollar finish on Feb. 15.
The local unit also appreciated by 28.1 centavos from its P48.381 close on April 23.
The peso opened Friday’s session stronger at P48.27 per dollar. It reached a peak of P48.099, while its intraday low was at P48.28 against the greenback.
Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was supported by the slimmer BoP deficit seen in March.
The country’s BoP deficit stood at $73 million in March, narrowing from the $2.019-billion gap in February, the Bangko Sentral ng Pilipinas (BSP) reported on Thursday. However, the March figure was a reversal of the $448-million surplus seen in the same month last year.
The central bank said the deficit reflected outflows after the government paid its foreign currency debts.
Meanwhile, a trader attributed the peso’s gains to profit-taking prior to release of US economic data on Friday.
The US Commerce Department was set to release consumer spending data for March after the local market’s close. — LWTN
