The Philippine peso touched the 49:$1 territory on Friday, a level last seen in 2017, as optimism on both domestic and global economic recovery boosted the local currency’s attractiveness.
The local unit closed 2 centavos stronger at P49.8:$1 from 50 on Thursday. This is the strongest for the peso in nearly three years when it closed at 49.63 on June 15, 2017.
The peso also reached an intraday high of 49.8 and low of 50.05, after it opened at 49.93.
Rizal Commercial Banking Corp. chief economist attributed the peso’s appreciation to the “continued decline in the US dollar against major global currencies on the back of improved global market risk appetite that led to gains in emerging markets such as the Philippines, some optimism recently about a quicker economic recovery as more countries around the world further re-open their respective economies.”
“Slight easing of the inflation inflation rate to 2.1% in May 2020, the slowest in six months, from 2.2% in April 2020, also supported the latest appreciation in the peso exchange rate,” Ricafort said. -NB, GMA News