Bloomberg News

Philippine Peso Approaches Two-Week High as Remittances Pick Up

April 17, 2012

The Philippine peso rose toward a two-week high following a pickup in transfers from Filipinos living overseas.

Remittances grew 5.8 percent from a year earlier to $1.59 billion in February, after increasing 5.4 percent in January, the central bank said yesterday. Exports increased 14.6 percent from a year earlier in February, the most in 10 months, the government reported last week.

“We remain quite positive on the peso,” said Goh Puay Yeong, a Singapore-based foreign-exchange strategist at Credit Suisse Group AG. “Part of the reason is the recovery in Philippine exports and remittances continue to be pretty robust.”

The peso appreciated 0.3 percent to 42.65 per dollar at the close in Manila, according to Tullett Prebon Plc. The currency touched 42.585 on April 13, the strongest level since April 3. One-month implied volatility, which measures exchange-rate swings used to price options, was steady at 5.70 percent.

The yield on the Philippines’ 8 percent bonds due July 2031 was unchanged at 6.15 percent, according to prices from Tradition Financial Services. Yesterday’s closing level of 6.15 percent was the highest rate for the note in four weeks.

To contact the reporter on this story: Lilian Karunungan in Singapore at lkarunungan@bloomberg.net.

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net.


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