Philippine Peso Reaches Over Three-Year High Amid Budget Surplus; Stocks Decline

The Philippine peso hit its strongest level in over three years against the US dollar due to improved budget deficit data and weaker demand for safe-haven currencies like the greenback.

Despite this positive development, the main equities index (PSEi) contracted by 1.17 percent as concerns about rising coronavirus cases dampened market sentiment.

The peso closed at its strongest level since November 2016, reflecting improved government revenues and ongoing bond sales.

Factors contributing to the peso's strength include better-than-expected budget deficit data, weaker US dollar demand, and positive developments regarding potential vaccines for COVID-19.