Peso latches on to 49:$1 level in bumpy 2017 ride

The peso on Thursday returned to the 49:$1 level, reaching an over six-month high amid solid macroeconomic fundamentals, the Bangko Sentral ng Pilipinas (BSP) said.

The local currency closed at 49.98:$1, six centavos stronger than last Wednesday’s close of P50.04 against the greenback. It was the strongest close since June 19 at 49.91:$1, after which the peso slipped to 11-year low levels.

At the Philippine Dealing System, the peso reached an intraday high of 49.85:$1 and a low of 50.05:$1 after opening at 49.94:$1.

Total volume traded rose to $625.3 million from Wednesday’s $523.1 million.

In a text message to reporters, BSP Gov. Nestor A. Espenilla Jr. attributed the peso’s strength to a “combination of strong remittance and equity inflows as well as US dollar softness over uncertainties on the impact of US tax legislation.”

He added domestic fundamentals were also bolstered by the recent passage of the tax reform law. —BEN O. DE VERA