Peso hits near four-year high at P48.57 to $1; stocks dip

On Wednesday, August 19, the Philippine peso hit a near four-year high against the US dollar at P48.57 to $1 due to easing quarantine restrictions in NCR and other regions.

The currency's strength was attributed to the shift from modified enhanced community quarantine (MECQ) to general community quarantine (GCQ), improving economic recovery prospects.

Rizal Commercial Banking Corp chief economist Michael Ricafort noted that reduced importation during quarantines also contributed to the peso’s strengthening, with the US dollar generally weaker against other currencies due to decreased demand as a safe haven asset.

Conversely, Philippine stocks dipped slightly with the PSEi losing 1.86 percent and most sectoral gauges declining, though Ricafort attributed this to healthy profit-taking rather than a significant market downturn.