Peso up on holiday rise in OFW remittances
The Philippine peso ended the week stronger against the US dollar on Friday amid the increase of holiday-related remittances from Filipinos abroad.
The local currency appreciated slightly against the greenback by P0.005 to close at P48.04:$1 from 48.045 on Thursday.
This is the strongest for the peso in more than four years when it closed at P47.99:$1 on September 23, 2016.
“The peso exchange rate again slightly stronger vs. the US dollar... amid the seasonal increase in OFW (overseas Filipino workers) remittances and conversion to pesos in preparation for Christmas spending in the coming days,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.
The local unit also got a boost from the latest U$2.75 billion Philippine government bond issuance “that could add to the country's BOP (balance of payments) and GIR (gross international reserves), which are well into new record highs,” according to Ricafort.
“Major upcoming leads/catalysts, include further progress on the CREATE Bill, FIST Bill, and other legislative reform measures; final approval/passage of the P4.5 trillion 2021 national budget,” he said.
The anticipation for the seasonal increase in OFW remittances and conversion to pesos in view of the upcoming Christmas season will also provide support for the peso.—AOL, GMA News