Peso strengthens on strong foreign investment data
The peso听closed听stronger听Friday听in response to positive foreign investment data released by the central bank.听
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The听peso closed听at P49.865听against its听Thursday ending level of听P49.92,听the Bankers Association of the Philippines (BAP) said.听
The听peso听opened the session at P49.94, with a high of听P49.83听and a low of听P49.96.听
Dollar trading听volume听was听$774.19 million, down from听$1.164 billion听Thursday.听
The peso听was听weaker compared to its听week-earlier close of听P49.84 on Sept. 3.听
The听market听was reacting听to a听central bank听report on foreign direct investment (FDI), Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said.听
FDI net inflows听rose听60.4%听year-on-year听in June to $833 million,听according to听preliminary data from the Bangko Sentral ng Pilipinas (BSP).听
The June听total听nearly doubled听the听$433 million听result from May. That month, FDI had fallen听25%听year-on-year.听
First-half FDI net inflows听rose听40.7% year on year to $4.298 billion.听
Mr. Ricafort added听that听the government’s announcement听of a new 鈥済ranular鈥听lockdown听policy starting听Sept. 16 also helped听support the peso.听
The听government鈥檚 pandemic听task force said the new guidelines on lockdowns have been “provisionally approved” for pilot implementation in Metro Manila听between听Sept. 16听and听30.听
The new scheme will only have two community quarantine classifications with an “alert level” system to be determine by the听health听department every week. It will also implement barangay-level lockdowns听in areas with high听casec count.听
A听trader said the peso appreciated听in听听anticipation听of a weak US producer听price听report for August.听鈥 Beatrice M. Laforga听
