Peso strengthens to strongest level since January 2018

The Philippine peso continued its strong performance, closing at P50.26 per dollar on Wednesday, marking its strongest level since January 9, 2018.

This appreciation follows a trend that began last week when the currency closed at P50.30 per dollar, reflecting positive market sentiment on government fiscal stimulus measures during the pandemic.

The strengthening of the peso was attributed to remarks by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno and Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael Ricafort, who noted sound macroeconomic fundamentals and efforts against COVID-19.

According to Mr. Ricafort, new assumptions from the Development Budget Coordination Committee (DBCC), including increased spending to cushion economic losses due to the virus outbreak and lockdown, contributed to the peso's strength.

The enhanced community quarantine in Metro Manila and other high-risk areas has been extended until May 15, highlighting ongoing efforts against the coronavirus disease.