Foreign buying in PHL shares buoys peso

The Philippine peso rebounded against the dollar on Wednesday as foreign funds flowing into the stock market supported the local currency.
 
The peso closed at P50.150:$1, firmer by 2.5 centavos from 50.175 on Tuesday.
 
“Foreign flows into the local equity market helped boost the local unit,” Bank of the Philippine Islands lead economist Emilio Neri Jr. said.
 
Foreign funds shifted out of the US and back to the Philippines, analysts said. 

Foreign funds bought P6.378 billion worth of shares and sold P5.126 billion for net a net buying position of P1.251 billion, Philippine Stock Exchange data showed.
 
Neri, however, said that the peso’s gains were capped ahead of the release of the Federal Open Market Committee minutes and the US-China summit. 

Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines noted the local’s unit’s slight appreciation might just be a result of profit-taking from the greenback’s gains from previous sessions.

“The peso just moved sideways today, as investors remained on the sidelines ahead of key US economic reports and the critical meeting between the US and Chinese presidents,” Dumalagan said. — VDS, GMA News