The Philippine peso rose to within 0.2 percent of a five-year high on optimism accelerating growth will spur overseas demand for the nation’s assets.
Gross domestic product increased 6.6 percent last year, compared with the 3.9 percent pace in 2011, official data on Jan. 31 showed. That’s among the fastest in Asia. The Philippine Stock Exchange Composite Index climbed to a record today, while net purchases of local equities in 2013 rose to $690 million, exchange data show.
“The strong economic indicators led by the GDP continue to create positive sentiment on the Philippines,” said Jonathan Ravelas, chief market strategist at BDO Unibank Inc. in Manila. “The stock market is attracting more inflows.”
The peso strengthened 0.2 percent to 40.625 per dollar as of 10:23 a.m. in Manila, according to Tullett Prebon Plc. It reached 40.550 on Jan. 14, the strongest level since March 2008. The currency advanced 1 percent in 2013, the third-best performance in Asia.
One-month implied volatility, a measure of expected moves in the exchange rate used to price options, increased 10 basis points, or 0.10 percentage point, to 4.4 percent.
A government report tomorrow may show inflation quickened to 3 percent last month from 2.9 percent in December, according to the median estimate of economists in a Bloomberg News survey.
The yield on the government’s 6.125 percent bonds due October 2037 was little changed at 5.095 percent, according to prices from Tradition Financial Services.
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