The peso on Monday posted a fresh four-year high against the US dollar, tracking the appreciation of regional currencies following the results of the US presidential elections.
The local currency closed at 48.145 against the greenback, stronger than its 48.22 finish Friday. It was the peso’s strongest level since closing at 48.10 per dollar on Oct. 20, 2016. Total volume turnover reached $679.3 million on Monday, down from $779 million on Friday.
“The PHP continues to track regional peers, albeit one of the slower to appreciate, as the US dollar dips in reaction to the US elections,” ING Bank Manila senior economist Nicholas Mapa told Manila Standard via e-mail.
“Only time will tell if we finally pierce through to the 47 handle, but will depend largely on US dollar sentiment while BSP [Bangko Sentral ng Pilipinas] keeps an eye on the recent developments as they maintain their presence in the market,” Mapa said.
Bank of the Philippine Islands lead economist Jun Neri earlier predicted a recovery in imports in the coming months as the economy gradually reopens. He said this would mean a pickup in dollar demand, making the peso move to the 49-per-dollar level.