Peso strengthens as investors look past flood scandal

THE PHILIPPINE PESO strengthened against the dollar on Monday as investors shifted focus from a widening corruption scandal linked to state flood control projects.

- Aaron Michael C. Sy

It closed at P58.931 a dollar, up 13.4 centavos from Friday’s P59.065 finish, according to Bankers Association of the Philippines data posted on its website.

The peso opened at P59.055 and traded from P58.91 to P59.199 during the session. Turnover fell to $1.316 billion from $1.837 billion on Friday, reflecting a more cautious market.

“We are seeing sentiment moving on from the recent corruption issues, trending upward toward the close today,” a trader said by telephone.

The rally followed allegations at the weekend by former Party-list Rep. and Appropriations Committee Chairman Elizaldy $. Co that President Ferdinand R. Marcos, Jr. had ordered P100 billion in project insertions in the 2025 budget. The claims were rejected by the Presidential Communications Office and Budget Secretary Amenah F. Pangandaman.

Stronger remittances added support to the peso, Cash remittances rose 3.7% to $3.12 billion in September from a year earlier, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Year-to-date, remittances through banks increased 3.2% to $26.03 billion, bolstering consumer spending and providing a cushion for the currency ahead of the holiday season.

Traders expect the peso to move from P58.90 to P59.20 on Tuesday, while Mr. Ricafort forecasts a range of P58.80 to P59.05.

Meanwhile, MUFG Global Markets Research said the peso could remain near the P59 level until the first quarter of next year as sentiment continues to be influenced by corruption concerns and their impact on government spending.