Peso extends winning streak for 2nd consecutive session

The Philippine peso continued to strengthen against the US dollar on Tuesday, still on the positive economic data released by the central bank.

The local currency gained 11.5 centavos to close at P52.475:$1 from Monday's P52.59:$1.

"The peso strengthened by P0.115 or 0.2% today... a day after the year-on-year improvement in the BOP surplus data and revised GIR data at 2.5-year highs," Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC)

Data released by the Bangko Sentral ng Pilipinas (BSP) on Monday showed that the balance of payments (BOP) position registered a surplus for the sixth consecutive month in April.

The BOP position registered a $467-million surplus in April, a reversal from the $270-million deficit the same month last year, but smaller than the $627-million surplus in March.

Ricafort also attributed the peso's climb on Tuesday to the seasonal increase in remittances.

"Some seasonal increase in remittances to finance tuition payments, school opening-related expenses, vacations, and even fiesta celebrations around the country, all in the month of May, especially in the latter part of the month," he said.

"Peso also partly supported by proceeds from recent foreign bond sales (euro, panda bonds)," he elaborated. — BM, GMA News