Peso firms up as worries about US tax bill passage weigh on dollar

The Philippine peso traded on a strong note for three straight sessions Friday as concerns about the progress of the US tax reform weighed on the greenback.The local currency gained 2.5 centavos to close at P50.445:$1 from 50.47 on Thursday.

“Despite the Fed rate hike, the dollar was weak because of the concerns over the passage of the US tax reform,” BDO Unibank Inc. chief market strategist Jonathan Ravelas said.

According to a report by Reuters, investors worry about potential roadblocks to the tax overhaul after Republican Senators Marco Rubio and Mike Lee said they would not get behind the bill without changes to child tax credits. 

“Also, the increase in remittances in time for the Christmas season are providing support for the local unit,” Ravelas said.

Week-on-week, the local unit strengthened by 5.5 centavos from P50.50:$1 on Dec. 8, 2017. Year-to-date, it was softer by 72.5 centavos compared with P49.720 on December 29, the last trading day of 2016. — VDS, GMA News