MANILA – The Philippine peso achieved its strongest finish in nearly four months on Tuesday 13 Aug 2024), closing at 56.96 against the US dollar. This marks a significant rebound as the peso returns to the 56 level, strengthening by 0.36 from Monday’s closing rate of 57.32 to the greenback.
The peso opened the day at 57.25, fluctuating within a range of 56.92 to 57.30, with an average trading level of 57.14 to the dollar.
According to Michael Ricafort, chief economist at Rizal Commercial Banking Corp., the peso’s recent performance is the strongest since April 15, 2024, when it closed at 56.81 to a dollar. “This appreciation is a positive signal for the financial markets and the broader economy,” Ricafort noted.
Projections for Wednesday suggest the peso will trade within the 56.85 to 57.05 range.
The volume of trade also saw an uptick, increasing to USD1.8 billion from the previous day’s USD1.18 billion.
The stronger peso positively influenced investor sentiment, leading to a 0.56 percent rise in the Philippine Stock Exchange index (PSEi), which closed at 6,650.44 on Tuesday. The All Shares index also saw an improvement, gaining 0.32 percent to finish at 3,610.00.
Among the sectoral indices, Property led the gainers with a 1.69 percent increase, followed by Industrial (+0.56 percent), Holding Firms (+0.44 percent), and Services (+0.37 percent). However, Mining and Oil, as well as Financials, ended in the red, losing 1.09 percent and 0.18 percent, respectively.
Despite the positive momentum, decliners outnumbered advancers at 100 to 81, with 64 stocks remaining unchanged.
Philstocks Financial Inc. senior research analyst Japhet Tantiangco attributed the market’s recovery to the peso’s strength against the US dollar, along with investor optimism surrounding second quarter and first half corporate earnings.
ia/mnm
