Peso continues to gain, closes at 51.05 to $1

The peso continued to gain against the dollar yesterday, rising by another nine centavos to close at 51.050 from Tuesday’s close of 51.140 to the dollar on news that remittances from millions of Filipinos working overseas sent nearly a billion dollars in January.

"The remittance figure is helping the financial market and sentiment generally towards the economy is positive," a local trader said yesterday.

Traders said the peso was also boosted by the strengthening of the regional currencies against the dollar.

Traders said the rise of the regional currencies against the greenback came as the regional financial market scaled back expectations of how high US interest rates will climb after a report from Medley Global Advisors, an influential consulting group, said the Fed is likely to raise rates to 4.75 percent.

At the Philippine Dealing System (PDS), the peso opened strong at 51.050 before hitting a high of 51.010 to the dollar. Transaction was heavy at $663.57 million.