Philippine peso gains seven centavos

MANILA, Philippines - The peso started the week stronger, buoyed by positive sentiment in anticipation over the inauguration of Barack Obama as the 44th US President. It closed at P47.13 per dollar Monday, seven centavos higher than its finish of P47.20 per dollar last Friday. "The peso strengthened mainly because of the improvement in the US market, which was in preparation of the inauguration of US President Barack Obama. The regional currencies improved as well," a trader said. However, the trader said the peso’s appreciation would be short-lived. "I don’t see a stronger peso after the Obama inauguration. I think it will weaken in the long-term, specifically at the end of the month." Another trader, meanwhile, said new central bank rules on the monitoring of foreign exchange transactions might impact negatively on the local currency. "This form of regulation usually discourages investors. The move might backfire against the currency, instead of helping the peso," the trader said. Total volume of transacted dollars was brisker at $662 million from last Friday’s total transaction amounting to $584 million. — Ma. Aizl Camille B. Cabarles, BusinessWorld