BW FILE PHOTO
THE PESO strengthened against the dollar on Thursday as faster April inflation raised bets that the local central bank would hike borrowing costs earlier than planned and after the widely expected 50-basis-point hike from the US Federal Reserve.
The local unit closed at P52.385 per dollar on Thursday, appreciating by 11.5 centavos from its P52.50 finish on Wednesday, data from the Bankers Association of the Philippines showed.
The peso opened Thursday’s session at P52.38 versus the dollar. Its weakest showing was at P52.425, while its intraday best was at P52.23 against the greenback.
Dollars exchanged fell to $907.5 million on Thursday from $1.339 billion on Wednesday.
“The peso strengthened after the stronger-than-expected Philippine inflation report bolstered expectations of a Bangko Sentral ng Pilipinas (BSP) rate hike within the quarter,” a trader said in an e-mail.