MANILA – The peso surged to its more than three-year high level against the US dollar Friday after Moody’s Investors Service affirmed its investment-grade rating on the country, but the main equities index contracted on worries on the rise of coronavirus disease 2019 (COVID-19) cases.
The local currency finished the week at P49.44 against the green back from its P49.535 close Thursday.
It opened the day at P49.55 from P49.49 start in the previous session.
It traded between P49.57 and P49.41, resulting in an average of P49.493.
Volume totaled to $687.8 million, lower than the $768.49 million a day ago.
Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso’s strength to Moody’s Investors Service’s decision to affirm its Baa2 rating with a stable outlook on the Philippines.
“(This decision is) another sign of resilience on the country’s economic and credit fundamentals, including fiscal performance, as some other countries worldwide were downgraded due to Covid-19 pandemic/lockdowns,” he said in reply to e-mailed questions from Philippine News Agency.
Ricafort said local currency’s close Friday is among its strongest finish in more than three years, or since June 5, 2017 when it finished the trade at P49.40 to a greenback. (PNA)
