MANILA, Philippines – The peso gained strength on Wednesday, along with most currencies in the region which ended higher after oil prices fell below $128 per barrel.
The peso closed at P44.02 to the dollar, 59 centavos higher than P44.61 on Tuesday.
Trading volume at the Philippine dealing system was heavy at $1.467 billion.
This was the highest trading volume recorded since the spot market started using the Philippine Dealing and Exchange Corp. (PDEX) system.
Traders said, hoewver, that the currency appreciation was merely due normal trading activities and that no real money was flowing in.
Observers said the Bangko Sentral ng Pilipinas (BSP) was seen participating in the market, putting in as mych as $600 million on the buy side, to ease the currency’s volatility.
“We just make sure there is an orderly movement in the adjustment of the peso, regardless of whether it’s going up or going down,” said Central Bank Deputy Governor Diwa Guinigundo.
Traders do not expect the peso to sustain its strength and anticipates a correction as it has already appreciated about P2 in the past two weeks. – GMANews.TV