Peso climbs vs dollar on reopening hopes

 Peso climbs vs dollar on reopening hopes

THE PESO strengthened against the dollar on Wednesday on hopes that the economy would be reopened further as cases continue to drop. — BW FILE PHOTO

THE PESO appreciated versus the greenback on Wednesday amid hopes of a further reopening of the economy and continued decline in infections.

The local unit closed at P51.10 per dollar on Wednesday, strengthening by 35 centavos from its P51.45 finish on Tuesday, based on data from the Bankers Association of the Philippines.

The peso opened Wednesday’s session stronger at P51.35 against the dollar. Its worst showing was at P51.365, while its intraday best was at its close of P51.10 versus the greenback.

Dollars exchanged increased to $934.2 million on Wednesday from $782.4 million on Tuesday.

A trader said the peso appreciated as investors were upbeat on the possibility of the further reopening of the economy.

Metro Manila Council Chairman and Parañaque City Mayor Edwin L. Olivarez said mayors in the National Capital Region unanimously support the move to relax restrictions to Alert Level 1 next month.

Their suggestion will be forwarded to the government’s working group on pandemic management.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said lower infections also improved market sentiment.

Active cases rose by 1,534 to 55,449 on Wednesday, based on data from the Department of Health.

For Thursday, Mr. Ricafort gave a forecast range of P51 to P51.20 a dollar, while the trader expects the local unit to move within P51.05 to P51.30. — LWTN