Peso gains 54 centavos vs. dollar on S&P credit rating upgrade

The peso closed the week out on a strong note, fetching 43.65:$1 from 44.19, in trading Friday on the PDEx, helped by the credit rating upgrade given by Standard and Poor's on Philippine sovereign debt.

 

The latest upgrade elevated the Philippines a notch above investment grade, the highest credit rating the Southeast Asian country has so far received. 

 

The debt watcher noted the upgrade "reflects the country's strong external liquidity and international investment position, combined with an effective monetary policy framework relative to the country's income level," while maintaining low inflation and interest rates.

 

"The Peso sharply appreciated against USD on Friday, basking in the glow of the recent credit rating upgrade from S&P," an analyst said.

 

Equity flows from also pushed the local currency.

 

"Foreign equity-related flows also helped the local unit close stronger against the USD," the analyst added. – VS, GMA News