Peso firms up for sixth straight session

The Philippine closed the week on a strong note Friday, extending its winning streak for the sixth straight session.

The local currency gained 5.5 centavos to close at P48.06:$1 from Thursday’s finish at 48.115.

This is the strongest for the peso in more than four years since it finished at P47.99:$1 on September 23, 2016.

“The peso exchange rate again closed stronger vs. the US dollar for the sixth straight day... after the highest BOP (balance of payments) surplus in nearly a decade and also after the highest net foreign portfolio investments data in nearly two years, both of which support new record high GIR (gross international reserves) at $103.8 billion, which fundamentally provides greater buffer/cushion/support for the peso exchange rate,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Data released by the central bank showed that balance of payments (BOP) position posted a $3.44-billion surplus in October, up from $2.104 billion in September and $163 million in October 2019. 

The BOP consists of Philippine transactions with the rest of the world during a specific period. A surplus means more funds entered the country, while a deficit means more funds went out.

“Peso also stronger as December draws nearer, when there is a seasonal increase in OFW remittances and conversion to pesos for Christmas spending,” Ricafort said.

Since the start of 2020, the peso has already appreciated by a total of P2.575 or 5.1%. -MDM, GMA News