Peso hits 2-month high at P47.08

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The peso hit a two-month high on Thursday, in line with the movement of other regional and emerging market currencies.

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The currency gained 21 centavos to close at P47.08 to $1 from its P47.29 finish on Wednesday. It was the highest level of the local currency since reaching P47.03 to $1 on January 7.

Joey Cuyegkeng, ING Bank senior economist, said the peso strength in past few days is in line with strength of Asian and emerging market currencies and coincides with improved risk appetite.

Cuyegkeng said global slowdown fears have eased with a better than expected economic reports mostly of major economies including stabilizing manufacturing, consumer spending and rising property prices, particularly in China.

Another factor, the economist said, was the post-G20 monetary easing in China and likely easing in Eurozone and possibly in Japan, while markets are expecting the US Federal Open Market Committee would shift to a more gradual pace of tightening.

“With a more favorable global backdrop, Philippine economic fundamentals which remain favorable become an important confidence booster despite leadership uncertainties,” he said.

The peso opened at P47.19 to $1 at the Philippine Dealing System before trading between P47.06 and P47.19. Total transactions rose to P962.5 million from P639.4 million in the previous session.

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