Peso carves fresh three-year high

The Philippine peso appreciated against the US dollar for the second consecutive trading session on Monday, marking its best performance in over three years.

The local currency gained 6.5 centavos to close at P49.375:$1, the strongest close of the peso since the P49.35:$1 on November 16, 2016.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, less demand weighed on the dollar.

"The peso closed stronger today... after the recent weakness of the US dollar vs. major Asian/global currencies amid less demand for safe havens such as the US currency after continued gains in the US/global stock markets," Ricafort said in a mobile message.

He also noted improved US economic data such as housing starts, as well as positive developments on the possible vaccines and cures against the coronavirus disease 2019.

"Local financial markets including the peso continued to gain after Moody's affirmation of the Philippine credit ratings," he added.

The global credit watcher on Thursday affirmed the Philippine credit rating at “Baa2” with a stable outlook, as it noted the country's buffer against a rise in public indebtedness.

"Peso also gained after some foreign investments in recent bond sales/issuances by the national government for RTBs and large private companies, as well as upcoming REIT issuance worth about P15 billion, all of which may entail some foreign buying/investments," said Ricafort.

The Philippines aims to raise P30 billion from the retail treasury bonds (RTB) tranche 24 or "Progreso Bonds" to boost the war chest against COVID-19.

The local bourse last week approved the initial public offering of AREIT Inc. -- sponsored by Ayala Land Inc. -- making it the first real estate investment trust (REIT) to be listed on the stock market. — DVM, GMA News