Peso up on OFW remittances

The peso closed at a seven-week high of 55.770 to a dollar, bolstered by strong remittance inflows from overseas Filipino workers, traders said yesterday.

The peso was also supported by the dollar’s weaker performance against most currencies in the region and the Bangko Sentral ng Pilipinas (BSP) saying monetary policy will remain cautious despite the easing of inflation in September, traders said. The nationwide inflation rate stood at a 13-month low of seven percent in September.

BSPI Securities senior manager Roberto Cano said good news on inflation may have been somewhat offset by the continuing delay in implementing the expanded value-added tax (EVAT) law, the centerpiece of the government’s fiscal program meant to balance the budget by 2010.

At the Philippine Dealing System (PDS), the peso finished at its intraday high of 55.770 to $1, the highest close since ending at 55.645 on Aug. 12. The peso settled at 56 vis-a-vis the dollar on Tuesday. Trading was heavy with volume reaching $544.55 million on an average rate of 55.904 to $1.