Peso opens 2018 at 6-month high vs. dollar

The Philippine peso opened the new year on a strong note against the US dollar to finish the first trading session of 2018 at a six-month high.

The local currency gained 12 centavos to close at P49.810:$1 on Wednesday from 49.93 on Friday, Dec. 29, the last trading day of 2017.

This is the strongest for the peso since June 16, 2017 when the pair closed at P49.90:$1.

Philippine financial markets resumed trading on Wednesday after a two-day break for the New Year holidays.

“Investors’ sentiments remain to be positive about the Philippines in general. They’re probably looking to position themselves for this year as economic growth prospects of the country remains high,” Union Bank of the Philippines chief economist Ruben Carlo Asuncion told GMA News Online.

The tax reform law approved by President Rodrigo Duterte is having an impact on market sentiment, said Land Bank of the Philippines market economist Guian Angelo Dumalagan.

“The peso appreciated on the first trading day of the year amid the local tax reform bill’s effectivity this year,” Dumalagan said in a separate market commentary.

He cited the overall weakness of the dollar globally amid uncertainties over the Federal Reserve’s direction under incoming chair Jay Powell. — VDS, GMA News