Wednesday, 20 May 2009

Remittances boost peso

We've only just begun
Erik de la Cruz
Business Mirror

THE peso rose for the third-straight session on Tuesday, buoyed by the surge in dollar inflows ahead of the school opening next month, dealers said.

Market participants also sold down their dollar holdings as investors’ appetite for risks held up following strong gains in US and European equities markets on Monday, they said.

“Remittances and a weak dollar across the board pushed the peso higher,” said Jonathan Ravelas, chief market strategist at Banco de Oro Unibank.

Remittances are expected to remain strong in the coming days as Filipinos abroad send more money for school expenses of their beneficiaries.

The peso closed at 47.28 to a dollar, near the intraday high of 47.26, which was a centavo away from a three-month high reached just last week. The local unit advanced by 0.5 percent from Monday’s close of 47.53.

Traders at Metropolitan Bank & Trust Co., in a note, said the peso’s gains were likely to be tempered by lingering concerns about economic growth prospects and the government’s fiscal health.

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