The Philippine peso closed in the P41 to a US dollar territory on Thursday, supported by heavy foreign exchange flows from both portfolio investors and overseas Filipinos. The local currency finished the day at P41.88 to a dollar, its strongest close in seven and a half years.
The peso touched a low of P41.94 and a high of P41.85 to a greenback within trading hours, before it weakened slightly to its closing level.
Volume traded reached $419.50 million.
Traders in Manila said the local currency’s strength was due mainly to heavy inflows from OFs sending money to their families in time for the holiday season. Inflows to the local stock market, which closed 2.3 percent higher earlier in the day, also supported the peso.
The renewed strength of the local market is due to Wall Street’s strength overnight, which in turn stemmed from data showing that the US economy is doing better than expected.