Peso hits new 6-year high of 47.455 to dollar

By Des Ferriols
The Philippine Star 04/26/2007

After a momentary confusion due to the resignation of National Treasurer Omar Cruz, the peso gained another 7.5 centavos to close at a new six-year high of 47.455 to the dollar.

The resignation of Cruz caused a slight weakening in early session but the exchange rate quickly recovered after dipping to an intra-day low of 47.64 to $1.

Cruz himself said it was understandable for the market to go through a short adverse reaction but the clarification of issues later in the day brought sentiments back on track.

"There was a lot of talk in the morning but I really could not explain the details of my decision until I was officially informed that my resignation has been accepted," he said.

Initial reports had Cruz battling against the Bangko Sentral ng Pilipinas (BSP) due to policy disagreements, indicating that the transition period between Cruz and his replacement could be less than smooth.

But Cruz later said his reasons were entirely personal, expressing confidence that the selection of his successor and the take-over of the Bureau of the Treasury (BTr) should be seamless.

On the other hand, the BSP said the strength of the peso was still fundamentally supported by the sheer strength of foreign exchange inflows which has consistently dampened the demand for US dollars.

In the coming months leading up to the reopening of classes in June, monetary officials are expecting foreign exchange inflows to continue surging with overseas Filipino workers sending money to their families for school tuition.

 

http://www.philstar.com/philstar/NEWS200704260703.htm