Skip to content

Philippines Today

home of the Global Filipino

Menu
  • News Stories
  • Regional News
  • Business & Economy
  • Science & Technology
  • International
Menu

Peso climbs to 44.8/$1

Posted on July 21, 2007

PHILIPPINE NEWS SERVICE — THE peso continued to climb to fresh seven-year highs, breaking through 45 against the dollar and completing its best weekly performance in years after the government said it would not impose capital controls to curb the currency’s rise.

The unit opened at 44.99 and closed at 44.80, averaging at 44.86 on a volume turnover of $517 million, lower than Thursday’s $637.5 million.

The peso gained further even as the Philippines’ third-largest bank forecast that the gross domestic product would grow by 6.4 percent this year, well within the government’s forecast range.

Finance Secretary Gary Teves said “non-market forces, like restrictions on capital,” would not be used to cap the peso’s advance to its highest level in almost seven years.

“Investors are confident the government will allow market forces to determine the exchange rate, encouraging more funds into stocks,” said Roland Avante, treasurer of Chinatrust (Philippines) Commercial Bank.

Traders said the peso’s momentum pointed to a further appreciation, adding markets were awaiting President Gloria Macapagal Arroyo’s State-of-the- Nation Address on Monday, from which many investors would take their cue.

But others were on guard for a correction, saying the peso’s strengthening might now be overdone.

Central bank Gov. Amando Tetangco Jr. said “the peso is buoyed by equity-related inflows and is moving up against the US dollar like the other regional currencies. Still, the rapid pace of appreciation is of some concern, since this tends to increase volatility,” he said.

Rizal Commercial Banking Corp. warned of a correction soon. “[The peso] could go to 44.75 and even 44.50, but that would be the peak,” said bank vice president Marcelo Ayes.

“It’s bound for a consolidation. The import season is upon us, and it’s now the tail end of the remittance season. A healthy correction is necessary,” he said.

The Metropolitan Bank and Trust Co. saw the peso’s support level at 44.80, but said the currency still had room to appreciate to 44.60.

Another banker said the peso would continue to be strong because of the continuing flow of portfolio and foreign direct investment.

“Not only do we see an increase in remittances, but there’s also a huge amount of dollars coming in for the [initial public offerings], and exports continue to expand despite the peso’s appreciation,” said Adelbert Legasto, executive vice president of Bank of the Philippine Islands, the Philippines’ third-largest bank.

The bank sees the peso ending at 45 to the dollar by the end of the year.

The bank said the 6.4-percent GDP growth for this year would be driven largely by the services sector, which it expects to expand by 9 percent.

Legasto said agriculture was expected to grow by 4.2 percent, industry by 5.3 percent, and the gross national product—GDP plus income from overseas—by 6.6 percent.

“We are more or less in agreement with government forecasts,” BPI vice president Theresa Javier said.

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Tumblr
  • Reddit

Related

News Categories

  • Announcement (34)
  • Business & Economy (1,567)
  • Comment and Opinion (74)
    • Random Thoughts (18)
  • Current Issues (425)
    • Charter Change (1)
    • Election (228)
    • Population (6)
  • International (389)
  • Life In Japan (66)
    • Everything Japan (41)
  • Literary (34)
  • Miscellaneous (610)
  • News Stories (5,312)
  • OFW Corner (297)
  • Others (75)
  • People (408)
  • Press Releases (163)
  • Regional News (3,362)
  • Science and Technology (502)
  • Sports & Entertainment (287)

Latest News

  • BSP keeps policy rates anew December 17, 2015
  • NEDA cuts PHL additional rice import for 2016 by 25% December 17, 2015
  • DA cites serious implications of banning genetically modified products December 17, 2015
  • BBL is not yet dead – Drilon December 17, 2015
  • Comelec recognizes Duterte’s CoC for president December 17, 2015
  • NEDA chief sees 2015 growth at 6% despite typhoons December 17, 2015
  • House of Representatives ratifies bicam report on P3.002-T national budget for 2016 December 17, 2015
  • Cebu-based developer invests PHP430M to build 709 townhouse units in north Cebu town December 17, 2015
  • City gov’t eyes P75-M income from economic enterprise December 17, 2015
  • Baguio City LGU presents traffic plan for holiday season December 17, 2015

Archives

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org

Science and Technology

  • DOST-ICTO targets 500,000 web-based workers from countryside by 2016
  • (Feature) STARBOOKS: A ‘makeover’ for librarians
  • Science, research reduce ‘cocolisap’ hotspot areas in PHL
  • Montejo to further improve PAGASA and empower scientists
  • 1st PPP in biomedical research produces knee replacement system fit for Asians

Press Releases

  • Microsoft to buy Nokia’s mobile devices business for 5.44-B euros
  • New World Bank climate change report should spur SEA and world leaders into action: Greenpeace
  • Save the Philippine Seas before it’s too late — Greenpeace
  • Palanca Awards’ last call for entries
  • Philippines joins the global call for Arctic protection

Comment and Opinion

  • Remembering the dead is a celebration of life
  • Killer earthquake unlikely to hit Panay Island in near future – analyst
  • It’s not just more fun to invest in the Philippines, it is also profitable, says President Aquino
  • How does one differentiate a tamaraw from a carabao?
  • Fun is not just about the place, it is also about the people, says DOT chief

OFW Corner

  • Ebola infection risk low in Croatia
  • Death toll rises to 41, over 100 still missing in landslide in India
  • Asbestos use in construction a labor hazard
  • 500,000 OFWs to benefit POEA on-line transactions — Baldoz
  • 25 distressed OFWs return home from Riyadh
©2025 Philippines Today | Design: Newspaperly WordPress Theme