Peso at new 4-year high as OFW remittances pour in

AFP FILE PHOTO

MANILA, Philippines—The peso inched up slightly further on Thursday, even as some other Asian currencies fell, as remittances from overseas-based Filipinos rose in the approach to the Christmas season.

The local currency closed at 41.05 against the US dollar, up by one centavo from the previous day’s finish of 41.06:$1, thus registering a new four-year high.

Intraday high hit 41.05:$1, the same as the day’s close, while intraday low settled at 41.12:$1.

Volume of trade reached $1.037 billion from $968 million previously.

Traders said the rise of the peso came as overseas Filipino workers sent more money to their families following the entry of the Christmas season.

The appreciation, however, was minimal given the drag caused by concerns over the US “fiscal cliff” and an unfavorable outlook for the eurozone.

In the United States, some spending cuts and imposition of certain taxes are scheduled by the end of this year. Moreover, the debt ceiling of the US government must be raised before the end of the year to avoid disruption of state operations.

In the eurozone, concerns over its economic performance linger as the European Commission said the region might barely grow in 2013.

Traders said problems confronting the US and eurozone economies led to the decline of some emerging market currencies and dampened what could have been a sharper rise of the peso.