Peso climbs further vs dollar on strong China GDP growth

THE PESO appreciated further against the dollar due to easing concerns over a global economic slowdown after a stronger-than-expected Chinese gross domestic product (GDP) report.

The local currency closed at PHP 56.70 versus the dollar on Wednesday, strengthening by 4.6 centavos from Tuesday’s PHP 56.746 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Wednesday’s session at PHP 56.72 per dollar. Its intraday best was at PHP 56.68, while its weakest showing was at PHP 56.775 against the greenback.

Dollars traded went down to USD 877.55 million on Wednesday from USD 1.109 billion on Tuesday.

“The peso appreciated as the stronger-than-expected Chinese economic growth report eased concerns of a near-term global slowdown,” a trader said in an e-mail.

Market sentiment was boosted by stronger-than-expected Chinese economic data on GDP, retail sales, and industrial production, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

China’s GDP grew 4.9% year on year in the third quarter, data released by the National Bureau of Statistics showed.

For Thursday, the trader and Mr. Ricafort see the peso moving between PHP 56.60 and PHP 56.80 per dollar. — AMCS