Peso closes at 45.97 to $1

MANILA, Philippines - The peso broke into the 45 to $1 level yesterday on the back of the upbeat mood in overseas financial markets as well as the positive reaction to the first State of the Nation Address of President Aquino.

The peso closed at P45.97 to $1 from Monday’s P46.145 to $1. The local currency opened stronger at P46.06 to $1 before hitting an intra-day high of P45.915 to $1.

Trade at the Philipping Dealing and Exchange Corp. remained brisk as $1.235 billion compared to Monday’s $1.147 billion.

Aside from the positive reaction to President Aquino’s SONA delivered the other day, currency traders also cited the favorable developments in the overseas financial markets including favorable figures on housing released in the US as well as the favorable results of the European bank stress test.

President Aquino reported anomalies undertaken during the regime of former President Arroyo and how the P1.5-trillion budget for 2010 was depleted down to less than six percent of the full-year budget with still five months left in 2010.

The country’s chief executive also reported the alleged over importation of rice resulting in huge financial losses of ailing National Food Authority (NFA), excessive bonuses received by the board of directors of the state-run Metropolitan Waterworks and Sewerage System (MWSS), among others.

Former BSP Governor Jose Cuisia said in an interview with reporters during the launching of the Banking Laws of the Philippines Book 1 that investors are optimistic about the new administration under President Aquino.

“Investors are optimistic under the new administration that more jobs will be generated because of the credibility of the new government,” the former president and chief executive officer of Philamlife stressed.

For his part, Bank of the Philippine Island President Aurelio Montinola III said investors welcomed the pronouncement made by President Aquino on crucial infrastructure projects to be undertaken together with the private sector as well as the lowering the cost of doing business in the Philippines through the elimination of red tape. “There is a situation of where the government is today,” Montinola added.