Peso slightly up as OFWs send more holiday remittances
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.