Peso returns to P51 vs dollar
Credit to Author: MAYVELIN U. CARABALLO, TMT| Date: Wed, 04 Sep 2019 16:37:07 +0000
THE Philippine peso recorded its strongest level in almost a month against the US dollar as external and domestic developments supported the local currency to return to P51:$1 on Wednesday.
The peso, which opened at P52.25 against the greenback, gained 38 centavos to close at P51.93, its strongest level in more than three weeks, or since its P51.88:$1 finish on August 9.
Sought for comment, Union Bank of the Philippines Ruben Carlo Asuncion told The Manila Times the peso’s “strengthening may have been due to external positive news about the return to calm in Hong Kong as the city’s chief executive indicated a withdrawal of the contentious extradition bill.”
“Locally, the market expects headline inflation as market consensus is looking at 1.8 percent,” he said.
Earlier, the Bangko Sentral ng Pilipinas said inflation likely decelerated further in August to within the 1.3-2.1 percent range.
The forecast is lower than July’s 2.4 percent and the 5.7 percent posted in August 2018.
The government expects the peso to end the year at between P51 and 53 level against the greenback, according to the interagency Development Budget Coordination Committee.
Last year, the peso ended at P52.58 versus the dollar, sharply down from its 2017 close of P49.93:$1.