The Philippine peso strengthened to a one-month high as a report showed exports increased the most since 2010.
Overseas shipments in February rose 24.4 percent from a year earlier, the government reported today, compared with a revised 9.2 percent increase in January and the 16.6 percent gain forecast in a Bloomberg survey. Overseas investors have pumped $100 million into local stocks this month, taking inflows this year to $494 million, according to exchange data.
The peso advanced 0.5 percent to 44.533 per dollar as of 10:49 a.m. in Manila, according to Tullett Prebon Plc. The currency touched 44.475 earlier, the strongest level since March 11. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, fell 15 basis points to 4.77 percent.
“The export numbers came up much better than expected,” said Saktiandi Supaat, the Singapore-based head of currency research at Malayan Banking Bhd. “The Philippines is seeing inflows because of its good economic prospects, as well as policies.”
The government plans to increase spending as officials bolster efforts to boost economic growth to as much as 8.5 percent by 2016, Budget Secretary Butch Abad said in an interview in Manila on April 4. The Philippine economy grew 7.2 percent last year.
The yield on the 8 percent notes due July 2031 slipped two basis points, or 0.02 percentage point, to 4.87 percent, according to prices from Tradition Financial Services.
To contact the reporter on this story: Lilian Karunungan in Singapore at email@example.com