The peso recovered some strength against the US dollar in Wednesday trade, closing at P46.74 to $1 on borrowed momentum from a stronger stock market.
The Philippine currency gained 19 centavos over its Tuesday’s level of P46.93.
“Foreign fund flows back into the PSEi helped lift the peso, as did investors who closed their long-USD positions on profit-taking,” said Bank of the Philippine Islands associate economist Nicholas Antonio Mapa.
On Wednesday, the Philippine Stock Exchange index (PSEi) rose 0.51 percent or 34.69 points to finish at 6,893.98.
The peso also tracked a regional rally after the dollar’s strength abated overnight.
“Gains were capped with speeches from Fed officials throughout the week, as well as important data from China tomorrow [Thursday) and US non-farm payroll on Friday,” Mapa said.
The local currency opened at P46.88 to $1 on the Philippine Dealing System (PDS) before trading between P46.69 and P46.91.
Total volume transacted on the PDS rose to $952.2 million on Wednesday from $677.3 million traded Tuesday.