MANILA – The Philippine peso hits the 49:$1 territory on Friday, gaining 20 centavos to close at a level not seen since 2017. The strengthened local currency closed at an intraday high of P49.80 as inflation relaxes to a six month low in May and optimism among traders as they expect recovery of the economy affected by the Covid-19 pandemic.
RCBC chief economist Michael Ricafort said the Peso continued to appreciate versus the US dollar amid improved global market risk appetite. He also attributed the strong pesos to the sentiment of local financial markets and S&P Global Ratings affirmation of the Philippine credit ratings upgrade to BBB+ despite the downgrade on some countries worldwide.
The move is a sign of a strong vote of confidence from the international community of investors and their optimistic outlook on the country’s relatively stronger economic and credit fundamentals established in the recent years.
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