By Bianca Cuaresma
The local currency ended the week with a strong rebound in its value against the dollar, data from the Philippine Dealing System showed.
This came about as market players put on “stark risk on sentiments” due to positive developments in the local and international scene.
The peso ended the week at 47.65 to a dollar on Friday, appreciating from the 47.73 to a dollar on Thursday. The total traded volume during the day reached $520.1 million, slightly lower than the previous $551.7 million. The local currency flirted with the P48-to-a-dollar level on Tuesday as market participants recognized the volatility of oil prices in international markets.
However, the peso started to appreciate in anticipation of the fourth quarter GDP numbers of the country on Thursday.
“The peso began to rally on Thursday on the back of the surprise fourth quarter GDP print, besting market consensus. This forced dealers to close long US dollar positions while foreign players returning to the PSEi [Philippine Stock Exchange index] also helped boost the local unit,” Bank of the Philippine Islands (BPI) Research Officer Nicholas Antonio Mapa said.
Data from the United States also caused the dollar to retreat overnight, according to Mapa, as economic data printed on the downside.
The risk on sentiment on the peso was pushed further as the Bank of Japan surprised markets by easing monetary stimulus further, BPI said.