Peso surges to P42.62:$1 as investors continue to pick up risky assets

Posted on October 29, 2011

THE PESO further strengthened against the dollar on Friday on the back of market players’ continued appetite for risky assets and as dealers sold the dollar ahead of the long weekend.

The local currency gained 23 centavos to settle at P42.62 per dollar against its P42.85-per-dollar close last Thursday.

It firmed up by 35.5 centavos on Thursday against its P43.205-per-dollar finish last Wednesday.

Marcelo E. Ayes, Rizal Commercial Banking Corp. senior vice president, in a phone interview on Friday said market players continued to load up on risky assets after European leaders came up with a package of measures to contain the debt crisis last Thursday.

He pointed out how stocks extended their rally to Friday, with the Philippine Stock Exchange index adding 1.55% or 66.22 points to 4,333.72.

Market players’ move to sell the dollar ahead of the long weekend also lifted the peso against the dollar, he added, explaining they expect a huge amount of remittances when trading resumes on Nov. 2.

Financial markets are closed on Monday and Tuesday to allow families to visit cemeteries as the country observes All Saints Day on Nov. 1.

A trader, in a separate phone interview, noted the wave of risk-taking extended as well to other markets in the region as other Asian currencies also gained against the dollar.

Dollars traded yesterday amounted to $864.8 million, down from $1.59 billion traded last Thursday. -- Ann Rozainne R. Gregorio