Risk on sentiment reigned in the region Wednesday and this enabled the Philippine peso to surge against the greenback following the same trend in the local equities market, with the index back at the 7,000-level.
The local currency gained Php 0.12 after finishing the trade at 49.65 from 49.77 Tuesday, which a trader said was in line with other Asian currencies.
The trader said strong performance of the Chinese yuan, following the People's Bank of China's (PBOC) decision to implement a new weighting system for yuan fixing, also supported its counterparts in the region.
The local unit opened the day at 49.75, little changed from the 49.78 a day ago.
Its closing level was the peso's strongest for the day while weakest was at 49.80, bringing the day's average to 49.73.
Volume of trade reached USD529.5 million, higher than the USD414.8 million in the year's first trading day.
A range of between 49.60 and 49.80 is forecast for the currency pair Thursday.
The Philippine Stock Exchange index (PSEi) rose 2.47 percent, or 169.64 points, to 7,030.95 points.
A trader said bargain hunting was up due partly to the positive December 2016 manufacturing data in several countries like the US.
Institute of Supply Management (ISM) purchasing managers index (PMI) in the world's largest economy hit 54.7 in the last month of last year, surpassing expectations of 53.6. An index of above 50 shows an increase while a print of below 50 indicates contraction.
All Shares went up by 1.95 percent, or 81.22 points, to 4,247.78 points.
All the sectors tracked the main index led by the Property with 3.60 percent hike.
Services came in second with 2.94 percent increase followed by Financials, 2.27 percent; Holding Firms, 1.87 percent; Industrial, 1.41 percent; and Mining and Oil, 1.39 percent.
Volume of trade reached 1.38 billion stocks amounting to Php 7.6 billion.
Gainers led losers at 144 to 43 while 41 stocks were unchanged.
Source: Philippines News Agency