Peso continues to appreciate
At the closing of the week’s trade this Friday, Peso inches up further as it closed at 46.05 against the US dollar, which is stronger than Thursday closing which is 46.09.
The peso continued to appreciate as favorable investor sentiment boosted appetite for currencies of emerging Asian economies. Volume of Friday’s trade went up to $73.1 million from only $611.44 million on Thursday.
This upward trend may continue next week, according to traders, as optimism for Asian developing countries is sustained by encouraging macroeconomic indicators. They said, emerging markets from Asia are seen to lead growth of the global economy this year. It is even predicted by some analysts that the peso may breach into the 45-to-a-dollar territory in the coming week.
Factors that brought about this appreciation include the sustained growth in remittances and modest rise in foreign investments like the direct placements in the business process outsourcing industry (BPO).
But not all sectors are happy with the upward trend of the value of peso. Exporters are complaining that the appreciation of peso is hurting the competitiveness of Philippine-made products.
Because of this, the export sector is asking the Bangko Sentral ng Pilipinas (BSP) to deliberately weaken the peso, particularly by buying more dollars from the foreign exchange market.
For its part, the BSP said it is intervening in the foreign exchange from time to time, but it is only to avoid very sharp and sudden rise of the local currency.
March 5, 2010
В· 
Roy В· 
No Comments
Posted in: banking, economy, finance, Foreign exchange, Government, money, Philippine banks, Philippine business news, Philippines
Leave a Reply