Peso bounces back to close at P49.93 by end-2017
Recent events provided strength for the local currency to pull through.
The peso may have seen its worst performance in over a decade this 2017, but it emerged stronger just as the year drew to a close.
The peso ended the year at P49.93 versus the dollar, improving to its best showing in six months and falling just within the P48-50 forecast range of the government for the year.
This comes even as the local currency faced some hiccups during the middle of the year, when it even peaked at P51.77 to a dollar in October amid all the uncertainties in the financial markets. Still, the peso bounced back to return to the P49 level.
Central bank Governor Nestor Espenilla, Jr. said sentiment towards the currency improved following the signing into law of the tax reform package which takes effect on Jan. 1, 2018, coupled with dollar softness as a similar tax law in the United States is inspiring market caution.
Pundits were previously saying that the peso could go as low as P52 to $1 this 2017. What a mic drop for the economic team!