Peso hits new three-year high of 48.76 vs. dollar

The Philippine peso ended the week on a strong footing Friday, marking a fresh three-year high, due to reduced interest for the US currency.

The local currency gained 7.5 centavos to close at P48.765:$1 from Thursday’s finish at 48.83. This is the strongest for the peso since it closed at P48.66:$1 on November 10, 2016.

“The peso exchange rate again closed stronger vs. the US dollar [due to] continuous weakness in the US dollar vs. major global currencies amid improved global market risk appetite that sent most US stock markets among 5.5-month highs and the Nasdaq near record highs, thereby reducing demand for the US currency as a safe haven,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Continued optimism on COVID-19 vaccine also supported market sentiment, including the peso, as this supports better economic recovery prospects, according to Ricafort.

Risk appetite for the local unit was also boosted by the expected easing of the modified enhanced community quarantine in Metro Manila and nearby areas.

Metro Manila and the provinces of Bulacan, Laguna, Cavite, and Rizal were again placed under the modified enhanced community quarantine (MECQ) starting August 4 until August 18.

Presidential spokesperson Harry Roque, Jr. earlier on Monday said that the extension is possible, but highly unlikely. —LDF, GMA News