Peso strengthens to P47.625:$1

MANILA, Philippines - The peso on Monday bounced back into the P47-to-the-dollar-territory on the back of the continued surge in remittances as the Christmas holidays draw near. It closed at P47.625 per dollar, nearly 50 centavos stronger than Friday’s P48.11 per dollar finish. The local currency enjoyed multi-week peaks early last week but its gains were capped last Friday by renewed risk aversion after a measure meant to rescue imperiled American automakers hit a snag at the US Senate. Traders, however, said the losses should be temporary as money sent home by Filipinos working abroad and the lack of demand for the dollar, mainly by oil importers, continue to provide the peso a tailwind. "The blips last week were only due to the announced failure of the bailout for US automakers. However, the weekend spelled improvements, with the rally in stock markets and expectation of remittances," Marcelo E. Ayes, senior vice president at the Rizal Commercial Banking Corp. (RCBC), said. The peso opened at its intraday low of P48 per dollar and settled near its intraday high of P47.62 per dollar. It averaged at P47.725 per dollar. Volume of dollars exchanged thinned to $564.66 million from $1.04 billion last Friday. — Maria Eloisa I. Calderon, BsuinessWorld