The peso closed at P47.30 to $1 on Tuesday, its strongest rate against the dollar in a week, with traders dropping the greenback on dovish comments from a US Fed governor.
The Philippine currency gained 4 centavos from its P47.34 close on Friday last week. Monday’s finish was the strongest since December 11, when the peso stood at P47.23.
“The peso-dollar trading opened at 47.29 with the dollar seeing some of its recent strength fade over the weekend… Dovish comments from one of the most hawkish FOMC [Federal Open Market Committee] members also forced some profit-taking” [in the dollar], said Nicholas Antonio Mapa, associate economist at the Bank of the Philippines Islands.
Jerome Powell, a governor of the US Fed, said in a statement over the weekend that the US central bank wants a “long, extended recovery” and that “the Federal Reserve has confidence” in the state of the US economy.
The Fed raised its interest rates last week for the first time since 2006.
The peso opened at P47.29 to $1 on the Philippine Dealing System before trading between P47.28 and P47.34.
Total volume of transaction on the PDS thinned to P288.2 million from P650.8 million on Friday.