The peso climbed to four-month high Thursday, as investors renewed their appetite for emerging markets’ assets.
Data from the Philippine Dealing System showed the peso gained 0.3 percent Thursday to close at 46.70 against the US dollar. It was the local currency’s strongest level since settling at 46.54 per greenback on Oct. 26, 2015.
Total volume turnover reached $676.8 million Thursday, higher than $503.5 million a day earlier.
“Risk-on sentiment dominated trading anew with the dollar pulling back in reaction to the sustained rally in crude oil prices overnight. Oil trends higher on expectations for cooperation between major oil producers to freeze output at January levels,” Nicholas Antonio Mapa, research officer at Bank of the Philippine Islands, said in an e-mailed message to the Standard.
“Furthermore, the market expects easing from the ECB in some shape or form with [European Central Bank president Mario] Draghi set to announce additional stimulus, which should find its way to Asia as investors seek higher-yielding assets,” Mapa said.