Peso hits over 4-year high vs dollar on strong BoP surplus

The Philippine peso strengthened against the US dollar on Friday, closing at P48.06 from P48.115 the previous day.

This marks the peso's strongest performance in over four years, with its last comparable closing at P47.99 on September 23, 2016.

The peso's appreciation was driven by a significant balance of payments (BoP) surplus of $3.44 billion in October, the largest recorded in nearly a decade.

This monthly surplus increased from $2.104 billion in September and $163 million in October 2019.

Key factors contributing to the surplus included the Bangko Sentral ng Pilipinas' (BSP) income from international investments, foreign exchange operations, and the national government's foreign currency deposits held by the central bank.

Additionally, foreign portfolio investments reached a nearly two-year high, further supporting the peso.

The gross international reserves (GIR) also hit a new record high of $103.8 billion, providing a strong buffer for the peso's exchange rate.