The Philippine peso closed yesterday at its strongest level against the dollar in nearly 2-1/2 years due to strong remittance inflows and offshore selling of the US currency, traders said.
The dollar ended at
P53.670 on the Philippine Dealing System, its lowest since closing at P53.585 on July 17, 2003. It closed at P53.985 Wednesday.
The peso has risen 3.3 percent against the dollar so far this year, making it Asia’s best-performing currency.
Some traders said they saw foreign funds dump the dollar, which fueled the peso’s upward momentum in early trade, apparently on the country’s positive fiscal and economic outlook.
Dealers said strong remittances from migrant Filipino workers and thin corporate demand for dollars helped the peso substantially.
Bangko Sentral ng Pilipinas Governor Amando Tetangco identified several factors underpinning the peso’s strong performance.
"The peso is being supported by overseas workers’ remittances, portfolio inflows, slack corporate demand for dollars and positive sentiment," Tetangco told reporters.
Some traders suspected the central bank of intervening in the market earlier this week to support the peso, but dealers said the monetary authority likely stayed on the sidelines Thursday.
Indeed, Tetangco said: "Even if we’re doing anything, nobody will notice it."
The dollar’s next support is at
P53.500 while resistance is at P54.000.
Some traders speculate the dollar may fall to
P52.00 next year as investments gain ground. 
