Peso extends rally to reach another three-year high

The Philippine peso extended its rally to mark another three-year high, following the release of local economic data.

The local currency gained 5.5 centavos to close at P48.71 from last Friday's finish of P48.765:$1. This is the strongest for the peso since it closed at P48.66:$1 on November 10, 2016.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, the peso's strength came after the release of data on gross international reserves (GIR).

"The peso exchange rate closed stronger... after the record-high GIR data and also amid expectations that the MECQ on Metro Manila and nearby areas would be eased after August 18, 2020, thereby helping improve economic recovery prospects," he said in a mobile message.

According to data released by the Bangko Sentral ng Pilipinas (BSP), the Philippines' GIR ballooned to a new record high of $98 billion in July.

Metro Manila, Bulacan, and the Calabarzon areas were again placed under the modified enhanced community quarantine (MECQ) from August 4 to August 18.

Presidential spokesperson Harry Roque Jr. said, however, that an extension is possible, but highly unlikely. — RSJ, GMA News