Php Up vs. USD As PBOC Further Backs Yuan

The Philippine peso appreciated against the US dollar Tuesday in line with the rally of regional counterparts after the strong yuan fixing by the People’s Bank of China (PBOC).

It gained Php 0.23 after ending the trade at 46.89 from the year’s first closing level of 47.12.

A trader said PBOC’s move to further support the yuan made investors risk appetite up.

Another factor is the second consecutive decline of the US ISM Manufacturing in December 2015 to 48.2, below market expectations of 49.0.

The trader said this development added to similar developments in the Chinese economy, making markets wary on the global growth path.

The local unit opened the session at 47.16, weaker than the previous day’s 47.00.

Its closing level is the local currency’s strongest for the day while weakest is at 47.17.

This brought the day’s average to 47.04, a tad better than the 47.12 Monday.

Volume of trade reached USD 768.6 million, way higher than the USD 459.5 million in the previous trading.

For Wednesday, the currency pair is seen to trade between 47.10 and 47.30. (PNA) RMA/JSV/EDS