Tuesday saw a record high for the peso that it has not reached in over four years. This is mainly due to remittances coming in from abroad, as well as investors’ selling of dollars to cut on losses. However this was quickly intervened by the Bangko Sentral ng Pilipinas (BSP) which bought up dollars in order to hold up the climb of the peso.
The Philippine peso struck the 40.870 to a dollar mark, the strongest it has ever been since March 2008. This year the Philippine peso was the strongest performing Asian currency gaining 7.2 percent against the dollar since the beginning of the year.
BSP Deputy Governor Diwa Guinigundo explained that the main factors directing the peso’s appreciation are exports, remittances, tourist receipts and BPO revenues. He further qualified that the BSP is aware of other possible causes of peso appreciation, such as the decline in competitiveness of other countries, ABS CBN News reported.
