Peso slightly up as OFWs send more holiday remittances

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The peso on Tuesday, Nov. 27, 2012, rose further to break into the 40-to-a-dollar territory on the back of robust remittances and increased appetite among investors for peso-denominated securities. AFP PHOTO

MANILA, Philippines — The peso inched up slightly on Tuesday as the Christmas season prompted overseas-based Filipinos to send more money to their families and as investors kept a positive outlook on the Philippine economy.

The local currency closed at 40.87 against the US dollar, up by one centavo from finish of 40.88:$1 the previous day.

Intraday high hit 40.86:41, while intraday low settled at 40.95:$1. Volume of trade amounted to $752.35 million from $632.802 million previously.

The movement of the peso the past few weeks was partly credited to the money being sent by overseas Filipino workers.

According to the central bank, remittances continue to stay strong even amid a crisis in advanced economies because of strong demand for Filipino workers in alternative labor markets. Moreover, they said, remittances usually peaked towards the end of the year as the OFWs sent more money for the holidays.

Besides remittances, market players said, foreign investments in peso-denominated securities was also a reason for the appreciation of the peso. The positive sentiment on the Philippine economy led to purchases of peso-denominated securities.

The rise of the peso on Tuesday came as the Philippine Stock Exchange Index (PSEI) breached the 5,700 mark to close at a new high of 5,706.28, up by 33.58 points from the previous day’s finish.

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  • http://pulse.yahoo.com/_AIPSCQM2TZQUMQ5GEIMWMWDFL4 Edward Solilap

    The strong Peso? does the value of our currency really worth of what the Central Bank thought? Tell us please what could you buy with your showy one peso that even the children wont accept it.

  • robrano

    It shows very clear the the dollar remittances and not the “rosy economy” drives the Peso up. Unfortunately, it hits the OFW families, they get less for their remittances, a really idiotic situation. The families get less, so OFWs send more and trigger the BSP trick to say that their remittances are the reason why they get less Pesos to their families. And that near Christmas when all prices shoot up for to get this money and the cash gifts of the “overperforming” gov. employees. A straight path to get the dollars cheap.

  • surigao_miners

    Pinapahirapan nyo ang mga OFW sa tuluyang pag bagsak ng Exchange Rate! Hindi man lang bumaba mga presyo ng bilihin sa atin. Kung purihin nyo mga OFW wagas! mga BUGOK KAYO!

  • Diablo_III

    I’m not that happy that the peso has appreciated because I’m sending dollars to our country but I can see that our country is doing much better with the current administration and I laude them for a job well done. Keep it going… Mabuhay ang PILIPINAS…

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