Peso firms up on likely Biden win

The Philippine peso closed the week on a strong note Friday, its third straight session of rally, as the market cheered the likely victory of Democrat Joe Biden against incumbent US President Donald Trump.

The local currency gained 0.9 centavos to close at P48.22:$1 from 48.31 on Thursday.

This is the strongest for the peso in more than four years since it closed at P48.19:$1 on October 24, 2016.

“The peso exchange rate again closed stronger vs. the US dollar... as Joe Biden moves closer to victory as the next US president that led to hefty gains in the local and US/global stock markets that resulted weaker US dollar versus major global currencies...,” Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Biden inched nearer to victory on Thursday over Donald Trump in an exceedingly close US election that hinged on razor-thin margins in a handful of states, while the Republican president launched a flurry of lawsuits hoping to slow down his opponent, according to a report by Reuters. 

“Victory by Joe Biden expected to be good for the Philippines and the rest of Asia with less US-China trade war and increases trade and economic growth, more US stimulus/government spending that lead to faster economic recovery in the US and worldwide since the US is the world's biggest economy and among the biggest trade partners of the Philippines, more relaxed immigration policies especially for Filipinos that could help increase OFW remittances, less protectionist policies that would encourage greater outsourcing for the Philippines,” Ricafort said.

Since the start of 2020, the peso has already appreciated by a total of P2.415 pesos or 4.8% against the P50.635:$1 exchange rate in end-2019. -NB, GMA News