Peso rises on projections of more dollar inflows in 2013By Michelle V. Remo
Philippine Daily Inquirer
MANILA, Philippines—The peso inched up on Tuesday amid projections dollar inflows to the country would remain strong in 2013.
The local currency closed at 40.57 against the US dollar, up by 9 centavos from the previous day’s finish of 40.66:$1.
Intraday high hit 40.55:$1, while intraday low settled at 40.61:$1.
Volume of trade amounted to $1.05 billion from $554.6 million previously.
The Bangko Sentral ng Pilipinas has reported that the country registered an $8.9-billion surplus in its balance of payments in 2012 given robust inflows of remittances, foreign portfolio investments, and foreign investments in the country’s services sector.
The BSP saw the likelihood for the Philippines to again post a BOP surplus this year, citing favorable projections on remittances and foreign investments in the domestic business process outsourcing industry.
Expectation that dollar inflows would remain significant in 2013 fueled speculations that the peso would appreciate some more this year, traders said. Such an outlook on the peso has been supporting demand for peso-denominated securities, they said.
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Tags: business process outsourcing industry , currencies , foreign direct investments , Foreign Exchange , Foreign portfolio investments , overseas Filipino workers’ remittances , Philippine peso , Philippines , US dollar