Peso climbs back to P62-to-$1 level on US Democratic sweep

The Philippine peso rallied back to the P62-to-one dollar level on Thursday amid optimism that the US-Iran war would end soon following the United States midterm elections "Democratic sweep."

The local currency gained 56.5 centavos to close at P62.97:$1, from P63.535:$1 on Wednesday.

"The peso's sharp move to around the Php62 level is largely a reflection of the post-US midterm repricing across global markets," Union Bank of the Philippines chief Carlo Asuncion said.

"The Democratic sweep has pushed oil and US Treasury yields lower and weakened the dollar, a combination that is particularly favorable for the Philippines as a net energy importer," Asuncion added.

The US midterm polls resulted in Democrats seizing control of the Senate and the House of Representatives starting in January 2027.

Rizal Commercial Banking Corp. chief economist Michael Ricafort, likewise, said "markets bet that a Democratic sweep in the US midterm elections could accelerate efforts to end the war on Iran/Middle East."

Asuncion added that the peso's sharp "move has been quite rapid, however, so some near-term consolidation would not be surprising."

"Note that the higher October inflation print was even largely ignored by investors and other market players," the Union Bank chief economist said. — VDV, GMA News