Peso rebounds on dollar profit-taking

The Philippine peso rebounded against the dollar and returned level on Wednesday as investors cashed in on gains from a stronger greenback in previous sessions.

The local currency strengthened by 14 centavos to close at P50.960:$1 from 51.10 on Tuesday.

“The peso recovered today, as investors locked in the dollar’s recent gain following the country’s weaker-than-expected fourth-quarter growth report," Land Bank of the Philippines market economist Guian Angelo Dumalagan said.

The peso slipped back to P51-to-one dollar level on Tuesday as the fourth quarter economic growth failed to please the market.

The Philippine economy grew by 6.6 percent in the fourth quarter, bringing the full-year economic growth to 6.7 percent.

This compares with the upwardly revised 7.0 percent GDP growth in the third quarter of 2017 and 6.6 percent in the fourth quarter of 2016.

“Investors likely shrugged-off yesterday’s unpleasant data and focused more on the country’s upbeat prospects this year. While domestic growth slowed, it was still generally firm, supported by rising government spending,” Dumalagan said. —VDS, GMA News