Peso closes 11 centavos stronger vs US dollar

The Philippine peso strengthened against the dollar Friday, boosted by a further cut in central bank’s policy rate Thursday.

The peso finished 12 centavos better against the US currency after it closed at 42.68 from the previous day’s 42.80 closing.

Its opening level on this week’s last trading day stood at 42.69, or 11 centavos stronger than day-ago’s 42.80 start.

It traded between 42.74 and 42.59, resulting in an average of 42.67, better than the 42.75 Thursday.

Volume of trade went up to US$ 1.28 billion from the previous day’s US$ 814.34 million.

Traders said investors took note of the additional 25 basis point cut in the Bangko Sentral ng Pilipinas’ (BSP) policy rate Thursday, which was made on account of the within-target inflation outlook and the subdued growth of the domestic economy due mainly to weak global economy.

To date, central bank’s overnight borrowing rate is at four percent and the overnight lending rate is at six percent, both of which are the lowest to date and similar with the rates from July 2009 until March 2011. (PNA)