Philippine peso hits 4-year high against US dollar

The Philippine peso reached its strongest point in over four years on Monday, November 9, 2020, closing at P48.145 against the US dollar.

This appreciation is attributed to the victory of Joe Biden in the US presidential election, which is anticipated to lead to an easing of the US-China trade war and is generally favorable to Asia.

Additional factors contributing to the peso's strength include the rally in overseas stock markets, a decrease in demand for the US dollar as a safe haven, and improved global market risk appetite.

The peso's strength is also partly supported by a weak domestic economy, evidenced by low import demand.

Bangko Sentral ng Pilipinas Governor Benjamin Diokno cited the country's substantial gross international reserves and the confidence of international financial institutions in the Philippine economy as supportive factors for the peso.