Peso gains for 5th day on lower imports, stronger remittances

The Philippine peso strengthened for the fifth straight trading day, closing at P48.115:$1 on Thursday.

This appreciation is driven by subdued import levels and an increase in remittance inflows, alongside a generally weaker US dollar against regional currencies.

Latest government data reveals that imports decreased by 16.5% year-on-year in September, while exports saw a slight increase of 2.2%.

The peso's strength is also attributed to improved trade data, indicating a better economic picture, though foreign investors have pulled out from the local stock market.

ING Bank Manila senior economist Nicholas Mapa expects near-term appreciation for the local unit to close out the year, contingent on OF remittances reaching the Philippines.