Peso extends winning streak vs. US dollar

Published April 19, 2021 05:06 PM By JON VIKTOR D. CABUENAS,GMA News

The Philippine peso appreciated against the US dollar for the fifth consecutive trading session on Monday to mark its best showing in two months.

The local currency gained 3 centavos to close at P48.35:$1 versus last Friday's finish of P48.38:$1. This is the strongest since February 16's P48.25$1.

Data released by the Bangko Sentral ng Pilipinas (BSP) after last week's session showed that the gross international reserves (GIR) stood at $104.82 billion as of end-March.

"The peso exchange rate continued to appreciate... as GIR remains relatively high despite easing from record highs posted in December 2020, equivalent to 12 months of imports," Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a mobile message.

He noted that the buffer is higher than the acceptable minimum international standard of three to four months, and also higher than year-ago levels that provide greater cushion for the peso.

"Peso also stronger recently as the MECQ in NCR Plus from April 12 to 30, 2021, though eased from the two-week ECQ, could slow down economic recovery prospects and demand for imports as well," said Ricafort.

The National Economic and Development Authority (NEDA) earlier said the recent two-week reimposition of the enhanced community quarantine (ECQ) in the NCR Plus bubble would result in P30 billion in losses in households' income, and shave of 0.8 percentage points from the GDP. — RSJ, GMA News

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