The peso appreciated further to a new 45-month high against the greenback on Friday, inching closer to the 47-per-dollar boundary on the continued weakness of imports.
The peso settled at 48.485 a dollar on Friday, up from 48.63 on Thursday. It was its strongest finish since closing at 48.48 a dollar on Nov. 4, 2016. Total volume reached $1.191 billion, up from $776.07 million on the previous trading day.
“The Philippine peso strengthens further as import demand remains tepid amidst the ongoing economic recession. PHP is also on an appreciation bias with the USD likely subdued in the medium term with Fed Powell signaling rates could remain lower for longer,” ING Bank Manila senior economist Nicholas Antonio Mapa told Manila Standard in an emailed message.
Mapa said the possible reasons for a reversal might be selling in the local equity and bond market with data releases on inflation and unemployment the potential triggers.
The local currency has appreciated by more than 4 percent against the US dollar this year.