Peso strengthens on euro, PHL equity gains

The peso strengthened on Friday tracking gains by the euro following announcements made by the European Central Bank (ECB). 

 

A dollar bought P40.68 on Friday, down 5 centavos from P40.73 Thursday. 

 

"The peso rallied today mainly on the recovery of the Euro as the ECB kept its policy rates unchanged and indicated an improvement in their economy," a trader said. 

 

According to Reuters, the ECB kept policy rate unchanged at 0.75 percent for the eighth month in a row. The decision to leave rates unchanged came with ECB president Mario Draghi's announcement that the euro zone would stabilize this year even as downside risks to growth remain. 

 

The peso was supported by demand from foreign investors who wanted to take positions in Philippine equities which saw another run-up today, as well as corporate demand ahead of weekend remittances. 

 

"The peso had support for from the rally of the PSEi and [dollar] selling of firms in anticipation of weekend remittances," the trader said. 

 

Tracking the policy announcement of the Bangko Sentral ng Pilipinas and mid-month corporate demand, the peso is seen trading between the 40.60 to 40.90 per dollar level next week. 

 

Some $636.1 million changed hands Friday. — VS, GMA News