THE PHILIPPINE STAR - October 6, 2009

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Resurgent peso closes at 46.70

MANILA, Philippines - The peso again entered the 46-to-the-dollar territory yesterday, following through with its appreciation past the 47 level last Friday to close at 46.70 against the greenback, propped up by continued dollar inflows from overseas Filipinos and the general weakening of the dollar against Asian currencies.

Traders said overseas Filipinos have been sending more dollars to help relatives who have been severely affected by tropical storm Ondoy.

The peso opened at 47 against the dollar, with total volume hitting P977.3 million during yesterday’s trading.

The strengthening of the peso also comes after British bank Standard Chartered upgraded its economic growth outlook for the Philippines to 1.5 percent from the previous 0.7 percent.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. has said that dollar remittances from overseas Filipinos may grow more than three percent this year following the hefty dollar inflows that poured into the country in July.

The latest estimate is higher than the previous projection of a two to three percent growth for 2009 and the original forecast of a zero percent growth. In 2008, remittances hit $16.4 billion.

Remittances from overseas Filipinos rose to $1.5 billion in July from $1.4 billion in the same month last year, posting the highest year-on-year growth for 2009 at 9.3 percent, latest data from the BSP showed.

The July figures brought remittances in the first seven months of the year to $10 billion, up 3.8 percent from the year-ago level, data from the central bank also.