The peso on Friday finished at its strongest level in more than three years, on robust inflows of foreign exchange, as investors trooped to emerging markets, encouraged by positive news coming from Greece.
European leaders have agreed on a new bailout plan for Greece, committing a $155-billion rescue package for the troubled economy. This encouraged investors to bet on emerging markets’ assets which offer higher yields.
“The fundamentals, growth prospects and the fiscal side remain positive in the Philippines,” said Lito Biacora, vice president for treasury at Bank of the Philippine Islands. “There is improvement in sentiment for riskier assets due to some resolution in Europe.”
The peso closed at 42.40 against the US dollar on Friday, a level that has not been seen since May 6, 2008 when the local currency closed at 42.28 against the greenback.
Bangko Sentral Governor Amando Tetangco Jr. said the Philippines was among the emerging markets that had been receiving strong inflows from abroad because of expectation that they would grow faster than advanced economies. “A lot of inflows were coming in again because of the push and pull factors,” he said.
Short-term foreign funds invested in local stocks, government securities and peso-time deposits hit more than $9 billion in the first half of the year. Of the total, more than $2 billion were retained in the local financial market, contributing to the appreciation of the peso.
Tetangco said those inflows were “affecting the movement not only of the peso but also of the other currencies in the region.”
He said the inflows also pushed the Philippine Stock Exchange index to a new record level this week. “The stock market continues to go up, and part of it is being funded by foreign inflows,” he said.
The PSEi, the 30-company benchmark index of the Philippine Stock Exchange, closed at 4,478.36 on Friday, near its record.
Jose Mario Cuyegkeng, a senior economist at ING Bank N.V., said the peso was expected to further appreciate against the US dollar in the coming months.
Cuyegkeng predicted that the peso would end the year at 42.25 per dollar, and achieve an average rate of 43.40 per dollar for the whole of 2011, stronger than 45.11 to the dollar in 2010.
He said the peso would average 42.50 against the dollar in 2012. –Roderick T. dela Cruz with Bloomberg
March –
IT’S WOMEN’S MONTH!
“Respect and support women
every day of the year/s!”
Invoke Article 33 of the ILO Constitution
against the military junta in Myanmar
to carry out the recommendations of the 2021 ILO Commission of Inquiry
against serious violations of protocols of
Forced Labour and Freedom of Association.
Accept the National Unity Government (NUG)
of Myanmar. Reject Military!
#WearMask #WashHands
#Report Corruption #SearchPosts #TakePicturesVideos
Monthly Observances:
Women’s Role in History Month
Weekly Observances:
Week 1: Environmental Week;
Women’s Week
Week 3: Philippine Industry and “
Made-in-the-Philippines Products Week
Last Week: Protection and Gender-Fair Treatment
of the Girl Child Week
Daily Observances:
March 8: Women’s Rights and
International Peace Day;
National Women’s Day
March 4: Employee Appreciation Day
March 15: World Consumer Rights Day
March 18: Global Recycling Day
March 21: International Day for the Elimination
of Racial Discrimination
March 23: International Day for the Right to the Truth
Concerning Gross Human Rights Violations
and for the Dignity of Victims
March 25: International Day of Remembrance of the
Victims of Slavery and the Transatlantic Slave Trade
March 27: Earth Hour
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