THE PESO strengthened versus the greenback on Thursday as the central bank said the local unit is seen to remain stable despite its recent depreciation and as coronavirus infections ease slightly.
The local unit closed at P51.34 per dollar on Thursday, appreciating by 16 centavos from its P51.50 finish on Wednesday, data from the Bankers Association of the Philippines showed.
The peso opened Thursday’s session stronger at P51.45 versus the dollar. Its weakest showing was at P51.485, while its intraday best was at its close of P51.34 against the greenback.
Dollars exchanged increased to $858.95 billion on Thursday from $754.2 million on Wednesday.
The peso strengthened versus the greenback on Thursday after the Bangko Sentral ng Pilipinas (BSP) said the local unit is expected to remain stable, a trader said.
The peso was also boosted by profit-taking after consecutive days of depreciation, the trader added.
BSP Governor Benjamin E. Diokno said the peso will continue to be supported by steady inflows from overseas remittances, receipts from business process outsourcing and foreign direct investments.
“The peso will remain to be market driven. We expect it to continue to reflect the economy’s macroeconomic fundamentals, meaning manageable inflation environment, strong and resilient banking system, a prudent fiscal position and an ample level of international reserve buffer,” Mr. Diokno said in an online briefing on Thursday.
Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso appreciated as local infections were relatively lower in the past days.
Active coronavirus disease 2019 infections rose by 31,173 to 275,364 on Thursday, based on data from the Department of Health. In the previous days, infections rose by around 20,000, much lower than the record 39,004 seen on Jan. 15.
For Friday, Mr. Ricafort gave a forecast range of P51.23 to P51.48 per dollar, while the trader expects the local unit to move within P51.15 to P51.40. — L.W.T. Noble
