Philippine peso beats 47:$1 level in early trade

(Update) The Philippine peso broke through the 47 to a US dollar level early Tuesday, touching a high of 47.985 during morning trading, helped by inflows that were built-up over the long Holy Week break. This is a fresh six-year high for the peso. Markets were closed from April 5 to April 9 in celebration of the Roman Catholic Lenten season. The peso closed at 48.05 against the greenback last April 4. On Tuesday the peso opened at 48.00 against the dollar. At the trading’s midday break, the local currency had a weighted average of 48.002 against the greenback. Total volume traded had reached $485.10 million. “The continued strength of the peso is mainly caused by strong remittances, the weakening of the US dollar and weak imports," former Budget Secretary and University of the Philippines economics professor Benjamin Diokno told GMANews.TV. “Weak import could mean slowing exports and economic growth ahead," Diokno said. Jonathan Ravelas, Banco de Oro chief market strategist, said the peso’s break of the 47 to a dollar level means the currency has steam to reach 47.50 in the short run. “Last week’s close at 48.05 continues to support a break below the 48 levels. If broken, should see a test of the 47.50 levels," he said. Analysts have earlier said the local currency has strength to test even the 46 to a dollar level this year on the back of steady inflows from overseas workers. Local fund manager Philequity Fund said proceeds from the government’s aggressive privatization program this year will also help the peso. "What could propel the peso to the P46 level or beyond are the expected proceeds from government's privatization program. This, we believe, is something that most economists have yet to consider in their projections," Philequity Fund Inc said in a statement.-with a report from Cheryl Arcibal, GMANews.TV