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THE peso
Monday gained on speculation overseas workers will send
more money home and investment will increase.
The
currency extended a three-week advance as investment in
factories and shops in the Philippines reached P350
billion last year, according to news reports. The peso
traded near the highest since 2000 as global investors
turned net buyers of stocks on January 11, the first
time in seven days.
“Remittances, investment and the psychology that the
peso will continue
to strengthen are all boosting the currency,’” said
Marvin Fausto, chief investment officer at BDO Unibank,
who helps manage the equivalent of $5.9 billion.
The
currency added P0.05 to P40.55 against the US dollar in
late afternoon trading, according to the Philippine
Dealing Exchange Corp. It will probably rise to between
P38 and P39 per dollar this year, Fausto said.
“Overseas workers will have to send in more dollars now
to compensate” for the shortfall due to the strong peso,
said Fausto. Overseas investment in power, tourism and
business outsourcing will continue to pour in as the
Philippine government increases public works spending,
said Fausto. (Bloomberg) |
