The peso jumped back into P50 per dollar territory on Thursday, a development attributed to a weaker greenback and renewed investor interest in the Philippines.
The currency finished the day at P50.93:$1, gaining 16 centavos from Wednesday, and its strongest close since August 10’s P50.79:$1.
“I suspect it is because we are expecting foreign direct investments coming into the Philippines: The Mighty deal and the EDC,” Finance Secretary Carlos Dominguez 3rd told reporters.
Dominguez was referring to Japan Tobacco International Philippines’ acquisition of cigarette manufacturer Mighty Corp. for P45 billion and Macquarie Infrastructure Management (Asia) Pty Ltd and Arran Investments P64.525-billion purchase of a stake in Energy Development Corp.
Banco de Oro market strategist Jonathan Ravelas, meanwhile, said: “The greenback was generally weaker today. It helped push the peso.”
He attributed the US dollar weakness to the resignation of Federal Reserve Vice Chairman Stanley Fischer, continued tensions over North Korea and a surprise Canadian rate hike.
“Market players are also monitoring the category 5 Hurricane Irma bound for Florida,” Ravelas added.
“Expect the currency to try the P50.70/50.80 levels in the near-term,” he said.