Peso continues to strengthen

The peso stayed at the 46:$1 level yesterday, closing at 46.91 to $1 from 46.945 last Friday.

At the Philippine Dealing System, the peso hit an intraday high of 46.76:$1 and a low of 46.92:$1 after opening at 46.83:$1.

Monday’s close sustained the five-day rally against the US dollar.

The total volume trade slid to $469.5 million from $649.755 million at the end of last week.

“The peso appreciated sharply over the past few weeks, tracking broad risk on sentiment in Asia as fears of a hard landing in China and a recession in the United States have abated. The sustained rise in crude oil lessens the chances for a deflationary world, which has helped risk sentiment and sentiment toward oil-producing countries gain,” Nicholas Antonio T. Mapa, research officer at Bank of the Philippine Islands, explained.

Mapa, however, said he saw the peso’s relative strength against the greenback getting tempered in the coming days. “The peso lost some stead toward the close of trading as investors reassess whether the recent rally may be overdone,” he pointed out. Ben O. de Vera

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