The peso slightly appreciated against the US dollar on Thursday, sustaining a two-month high and continuing to track regional strength.
The currency gained 3 centavos to close at P46.11 to $1 from P46.14 on Wednesday. Thursday’s close marked the peso’s strongest level since August 11’s P45.93.
“Strength of Asian currencies since last week comes after the gloom of the third quarter that reflected excessive pessimism, which recently has been soothed by revised forecasts showing still moderate economic growth in 2015 and 2016 for the global economy and for Asian economies and a soft landing for the Chinese economy,” said Joey Cuyegkeng, ING Bank Manila senior economist.
In its latest World Economic Outlook, the International Monetary Fund (IMF) said 2015 global growth would likely hit 3.1 percent, 0.3 percentage points lower than in 2014 and 0.2 percentage points below the forecasts in a July 2015 update.
The Fund also trimmed its global economic growth outlook for next year by 0.2 percentage point to 3.6 percent.
“IMF also warns of the substantial overborrowing of emerging market corporations and that commodity prices remain low despite the recent bounce that also supported the recovery of emerging market financial assets,” Cuyegkeng noted.
Risks remain, he said, as a US Federal Reserve rate hike is still expected in the next six months.
The peso opened at P46.05 to $1 at the Philippine Dealing System on Thursday before trading between P46.03 and P46.21. Total volume transacted dropped to $936.7 million from $1.242 billion in previous trade.