Philippine peso strengthens on ratings upgrade

Manila (Philippine Daily Inquirer/ANN) -

The peso strengthened back to the 40-to-a-dollar territory Friday to hit its highest finish in four weeks as financial markets cheered the decision of Standard & Poor's to give the Philippines an investment-grade rating.

The local currency closed at 40.91 against the greenback, up 14 centavos from Thursday's close of 41.05:$1. Intraday high hit 40.90 to $1 while intraday low settled at 41:$1. Volume of trade amounted to $997.1 million.

"The investment grade gave a boost to Philippine assets, thereby causing the peso to appreciate," said Jonathan Ravelas, market strategist for Banco de Oro.

The appreciation of the peso came as the Philippine Stock Exchange Index (PSEi) breached the 7,200 mark to close at a new record high of 7,215.35.

Traders said peso-denominated securities became even more attractive with the upgrade last Thursday of the country's credit rating from S&P. The move of S&P to raise the country's credit rating by a notch from BB+ to BBB-, the minimum investment grade, followed a similar move done by Fitch Ratings in March.

The two credit-rating agencies cited the country's favorable macroeconomic fundamentals in their decisions. These included rising foreign-exchange reserves, a declining debt burden of the government, benign inflation, robust economic growth rate and a stable banking system.

With the investment grade ratings, some traders expect the peso to stay as one of the most expensive Asian currencies this year.

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • What can void a new car warranty? James Deakin - Wheel Power
    What can void a new car warranty?

    "I was denied warranty once for changing my horn!" One very annoyed reader wrote. "I was told that placing a backup camera will void my warranty" said another. The others are best left in my private inbox as Yahoo! have a swear jar in the office that I do not feel like donating this week's pay to. Continue reading → …

  • Docu exposes destruction of PH marine resources VERA Files - The Inbox
    Docu exposes destruction of PH marine resources

    By Kiersnerr Gerwin B. Tacadena, VERA Files “Gutom (hunger),” Sen. Loren Legarda said is what’s in store for the Filipino people if destruction of the country's marine resources is not stopped. Legarda, chair of the Senate committee on Environment and Natural … Continue reading → …

  • ‘Yolanda’ fiberglass boats modern-day Noah’s ark VERA Files - The Inbox
    ‘Yolanda’ fiberglass boats modern-day Noah’s ark

    By Jane Dasal, VERA Files If you want to save the earth, build a boat. That's what a group of environmentalists is saying, especially if you want to save both the forests and fishermen affected by supertyphoon “Yolanda” (Haiyan). “Haiyan … Continue reading → …

POLL
Loading...
Poll Choice Options