Peso logs fresh three-year high

The Philippines closed the week on a strong note, extending its winning streak for the third consecutive trading session on Friday to again record a new three-year high.

The local currency gained 0.9 centavos to close at P49.041:$1 from Thursday’s close at 49.05. This is the strongest for the local unit in over three years since it closed at P49.95:$1 on November 11, 2016.

“The peso exchange rate vs. the US dollar closed slightly stronger today... as weaker GDP (gross domestic product) data and the two-week MECQ (modified enhanced community quarantine) affirm weaker pick up in imports, which reduces demand for US dollars to pay for imports,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

The Philippine Statistics Authority (PSA) reported the second-quarter GDP at -16.5 percent, the worst on record, bringing the country to a technical recession.

Economic managers said, however, that the worst is now over for the Philippines as recovery is likely in the succeeding quarters following the easing of lockdown restrictions. — DVM, GMA News