Remittances boost peso to two-month high

MANILA, Philippines - The peso on Thursday soared to a two-month peak against the dollar, as banks unloaded their US currency holdings barely two weeks ahead of a long Christmas break. It closed at P47.78 per dollar — also its intraday high — the first time since October 15 that it reverted back into the P47-to-the-dollar-territory. Thursday’s finish was a 47-centavo gain from Thursday’s P48.25 per dollar. With barely two weeks before Christmas day, remittances from Filipinos abroad have come in bulk, forcing financial institutions to dump the US currency. A lack of demand for the dollar — usually coming from importers — has been providing the peso more support, said Marcelo E. Ayes, Rizal Commercial Banking Corp. senior vice president. Global oil prices have plunged to multi-year lows, hovering around $40 a barrel, a stark contrast from its all-time high of over $147 per barrel seen in July. "The appreciation will continue towards Christmas. It’s driven more by the economic fundamentals, the flows and the lack of demand," he said. — M. E. I. Calderon, BusinessWorld