Connect with us

Hi, what are you looking for?

Economy

Peso strengthens on stimulus progress

The peso appreciated slightly against the dollar on Thursday on news that proposed stimulus programs here and in the United States are making progress.

The local unit closed at P48.045 per dollar on Thursday, inching up by 2.1 centavos from Wednesday’s finish of P48.066, data from the Bankers Association of the Philippines showed.

The peso started the session at P48.06 against the greenback. It depreciated to as low as P48.07 and peaked at P48.04 per dollar.

Dollars traded rose to $674.59 million on Thursday from $499.86 million the day prior.

The peso inched up over positive news on developments over proposed stimulus measures in the Philippines as well as in the US, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“The peso exchange rate has been steady to slightly stronger versus the US dollar on continued progress on the nearly $900-billion US stimulus package and the Federal Reserve pledged to maintain its massive asset purchase program until it sees substantial further progress in employment and inflation; Fed scrapped its previous pledge to keep buying over coming months,” Mr. Ricafort said in a Viber message on Thursday.

Reuters reported that deliberations over a US stimulus program may have advanced after House of Representatives Speaker Nancy Pelosi invited other lawmakers to meet on Tuesday to come up with a deal to be enacted within the week.

Mr. Ricafort said the market also reacted as one of the Philippine government’s recovery measures have been ratified by the Congress and inched closer to enactment.

He was referring to the Financial Institutions Strategic Transfer Act bill that allows banks to offload their bad loans to asset management companies as these are expected to rise amid a prolonged coronavirus pandemic. The bill will have to be signed by President Rodrigo R. Duterte to become a law.

UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said via Viber that the peso’s movement was also affected by the higher inflow of remittances from overseas Filipino workers (OFWs).

OFW remittances increased for the second straight month in October, rising by 2.9% to $2.747 billion, central bank data showed.

Mr. Ricafort said the peso may trade within P48-48.10 versus the greenback on Friday while Mr. Asuncion expects it to range from P48.04 to P48.08 per dollar. — B.M. Laforga

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

More than half of all Londoners have either started their own business or aspire to do so in 2023, compared to nearly a third...

Investing

The John Lewis Partnership has struck a £500m deal with the investment firm Abrdn to build 1,000 residential rental homes, redeveloping three sites already...

Investing

The first four scale-up visa licences have been approved by the Home Office three months after the scheme began, prompting lawyers to question the...

Investing

Barclays has been fined £8.4 million by the payments industry watchdog for failing to be transparent with retailers about the fees they were being...

Investing

Ministers have called on Britain’s biggest rail union to be “altruistic” and suspend strike action over Christmas and new year amid warnings that it...

Economy

Filipino writers, poets, and playwrights play an important role in countering and correcting falsehoods running rampant in an extremely polarized public sphere, said Dr....

You May Also Like

Investing

The minute that any question pops into your head, you can simply ask Google. No longer do we have to pour over books and...

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

Browsing history makes referring to sites and pages you’ve visited in the past seamless. It’ll help you recall what page you checked out on...

Investing

Insomnia is the most common sleep disorder in the global population. Therefore, it is a problem that many people suffer or have suffered throughout...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.