Peso rebounds on Fed call for more fiscal stimulus

The Philippine peso appreciated on Friday, thanks to improved investor sentiment in the global market after the US Federal Reserve urged for more fiscal stimulus to support the US’s COVID-19 responses.

The local currency appreciated by 10 centavos to close at P48.46:$1 from 48.56 on Thursday.

This is a fresh near four-year high for the local unit since it ended at P48.34:$1 on November 3, 2016.

Rizal Commercial Banking Corp. chief economist Michael Ricafort cited improved global market sentiment on possible discussions on the additional US stimulus measures as urged by Fed chairman Jerome Powell for the peso’s strength.

Powell called on the US Congress to provide more fiscal stimulus to the US economy to address the COVID-19’s economic impact.

“Positive vaccine developments also supported market sentiment including the peso,” Ricafort said.

“Since the start of 2020, the peso has already appreciated by P2.175 or 4.3%, versus P50.635 in end-2019,” he said.—LDF, GMA News