THE peso ended the week stronger against the dollar lifted by remittances that also tempered the dollar’s earlier gains from news of strong US gross domestic product data.
The peso ended the session at P50.14 against the dollar, gaining ten centavos versus Thursday’s P50.24-per-dollar finish.
“Seasonally, we expect our OFWs (overseas Filipino workers) to send lots and lots of dollars,” Ruben Carlo O. Asuncion, chief economist of UnionBank of the Philippines said in an e-mail.
“We saw foreign currencies pouring in ahead of the holidays, so that’s fuelling the stronger peso this week” a trader added.
The US Department of Commerce said the US economy grew by 3.2% in the July to September period, its fastest pace in more than two years.
“The peso continued its appreciation despite stronger US third quarter gross domestic product (GDP) growth rate reading relative to that of the previous quarter,” a trader said.
The peso opened stronger at P50.18 versus the dollar, while its intraday low was P50.35. It appreciated to as much as P50.13 against the greenback.
Dollars traded slightly increased to $740.8 million on Friday from the $630.2 million traded in the previous session.
“For the past two trading days, we are seeing a little bit of volatility where there’s a little bit of demand from the onshore market. Just today, we saw as [low] as P50.35 in the morning session, yet we saw peso close at P50.14,” the trader said over the phone.