Peso rises as World Bank projects over 6% economic growth for PH

MANILA, Philippines — The peso strengthened on the first trading day of the week as the World Bank reiterated its projection on the Philippines likely keeping its growth robust and within the 6-percent territory in 2013 and 2014.

The local currency closed at 41.235 against the US dollar, up by 3.5 centavos from Friday’s finish of 41.27:$1.

Intraday high hit 41.18:$1, while intraday low settled at 41.28:$1.

Volume of trade amounted to $890.6 million from $891.15 million previously.

The World Bank on Monday released an updated report on its outlook for East Asia and the Pacific, and reiterated its projection that the Philippines would probably grow by 6.2 percent in 2013 and 6.4 percent in 2014.

Echoing most projections, the World Bank said the Philippines would grow by another robust pace this year on the back of higher household consumption and potential rise in investments.

The favorable projection on the Philippines came amid lingering uncertainties in the global economy, partly driven by the ongoing crisis in the euro zone.

Marc Bautista, head of research of Metrobank, said in a press conference Monday that the peso would likely continue with its uptrend over the short term because foreign exchange inflows have been seen to remain significant.

Inflows are driven largely by remittances, foreign investments in business process outsourcing, and foreign portfolio investments.

Metrobank sees the peso rising further to close 2013 at 39.40 against the US dollar.