Peso returns to 49-level amid strong remittances

The Philippine peso continued its rally against the dollar on Thursday, returning to P49:$1-level, as influx of remittances from overseas Filipinos in time for the holiday season cause selling pressure on the greenback.

The local currency gained 6 centavos to close at P49.980:$1 from Wednesday's finish of 50.04.

Financial markets were closed on Monday and Tuesday for the Christmas break.

"There is a continued selling momentum due to strong seasonal remittances, this is in time for the holidays," a foreign exchange trader from a local bank told GMA News Online.

"The influx of remittances cause selling pressure on the dollar in the foreign exchange market because recipients of money transfers convert it into peso," the trader said.

There is only one trading day left this 2017 before the market goes on a four-day weekend for the New Year’s holiday. Trading will resume on Wednesday, Jan. 3, 2018. —Ted Cordero/KBK, GMA News