PESO  TOUCHES  FRESH  3-MONTH  HIGH

MANILA, September 25, 2009
(STAR) By Iris C. Gonzales  - The peso reached a fresh three-month high yesterday, closing at 47.44 against the dollar or breaching the 47.50 trading level, buoyed by hefty dollar inflows from overseas Filipino workers (OFWs) and improving investor sentiment in the country.

The last time the peso breached the 47.50 level was last June 5 when it hit 47.24 against the greenback.

During yesterday’s trading, the peso ranged from 47.32 to 47.50 against the dollar with total volume at P857.9 million.

On Tuesday, the peso closed at P47.56 against the dollar.

Traders said dollar remittances from OFWs and improving investor confidence helped prop up the peso.

Bangko Sentral ng Pilipinas Governor Amando M. Tetangco Jr. has said that dollar remittances from overseas Filipinos may grow by more than three percent this year following the hefty dollar inflows that poured into the country in July.

The latest estimate is higher than the previous projection of a two- to three- percent growth for 2009 and the original forecast of a zero percent growth. In 2008, remittances hit $16.4 billion.

Remittances from overseas Filipinos rose to $1.5 billion in July from $1.4 billion in the same month last year, posting the highest year-on-year growth for 2009 at 9.3 percent, latest data from the BSP showed.

The July figures brought remittances in the first seven months of the year to $10 billion, up by 3.8 percent from the year-ago level, data from the central bank also showed.

The BSP said remittances are expected to stay robust due to the efforts of banks and remittance centers.

Tetangco said monetary authorities would continue to review developments including those that would impact on inflation and the peso. He said the BSP would keep a close watch on any price pressures that could arise from improvements in global demand as sentiment continues to turn positive.


Chief News Editor: Sol Jose Vanzi

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