PSEi record, remittances strengthen peso

The peso firmed up on money changers and remittance centers unloading dollars as well as domestic equities market's new record high.

A dollar fetched P41.08 when trades closed on Tuesday, four centavos less than the P41.12 it got last Friday.

“Money changers and remittance centers sold their dollar holdings, which has accumulated on stronger inflows as it is enrollment season,” a trader said.

A second trader agreed, adding that dollar selling was also seen from some fund managers who wanted to buy into Philippine shares.

On Tuesday, bellwether PSEi closed at its 30th all-time high for the year of 7,313.46, up 50.84 points and 0.70 percent.

The first trader noted that heavy dollar selling has offset a strengthening bias of the US unit in the region from good retail sales data in the world's largest economy.

Fresh US retail sales data unexpectedly rose in April as households bought automobiles, building materials and a range of other goods, pointing to underlying strength of the economy, Reuters reported.

Tracking data releases in the Euro zone, traders see the peso moving within the 40.95 to 41.25 to-a-dollar territory on Wednesday. — Siegfrid Alegado/KBK, GMA News