Peso closes nearly unchanged against US dollar

The Philippine peso closed almost unchanged against the US dollar on Wednesday, albeit still slightly stronger, on easing concerns between Iran and the United States.

The local currency gained 0.4 centavos to close at P50.756:$1 from Wednesday's finish of P50.76:$1.

"The peso exchange rate closed marginally stronger/almost unchanged... after Iran assured that it does not want a war and that the Iranian missile strikes on US bases/facilities in Iraq concluded proportionate measures," Michael Ricafort, senior economist at the Rizal Commercial Banking Corp. (RCBC), said in a text message.

Over the weekend, US President Donald Trump said the US was ready to strike 52 Iranian sites should it attack American assets.

Trump said the United States would strike back "perhaps in a disproportionate manner" if Iran attacks America.

"Stronger data on M3/domestic liquidity growth and bank loans growth also supported the peso," added Ricafort.

According to data released by the Bangko Sentral ng Pilipinas (BSP), domestic liquidity expanded by 9.8% to about P12.4 trillion in November 2019, faster than the 8.5% growth in October. — BM, GMA News