New six-year high for the peso

The peso ended the trading week slightly stronger against the US dollar at P47.175 from the previous P47.180 amid more dollar inflows and a positive economic outlook among investors. Currency traders said the peso reached a six-year also due to the sterling performance of regional currencies versus the dollar. "It is basically more of the same story. The peso moves in tandem with other regional currencies like the rupiah. The regional currencies are strengthening, so the peso is also appreciating," a local dealer said Friday. The peso opened at P47.35 and reached its intraday high of P47.16 before settling to a low of P47.36. It averaged weaker at P47.237 from Thursday’s P47.192. The volume of transacted dollars rose to $700.50 million from $592.50 million. Aside from the strength of regional currencies, dealers also said the peso strengthened because investors are not anticipating any major violence during the elections, even noting that May 14 is a "non-event." Another dealer said special deposit schemes by the central bank to mop up the excess liquidity in the financial system is interest-hiking and positive to the local currency. Currency dealers are expecting the peso to hit P47.10 versus the dollar next week still due to heavy inflows, a rosy economic outlook, and the appreciation of regional currencies. - Charday M. Vizmanos/BusinessWorld