MANILA, Philippines - The peso strengthened yesterday to its highest level in more than five months, boosted largely by the new credit rating upgrade received by the country from Standard & Poor’s.
The local unit gained 54 centavos to close at 43.65:$1 yesterday from its 44.19:$1 finish on Thursday. This was the peso’s strongest level since it closed 43.595:$1 on Nov. 19 last year.
Traders said the credit rating upgrade awarded to the country on Thursday night cheered markets yesterday.
S&P hiked the Philippines’ credit rating to BBB from BBB- with a stable outlook. The surprise upgrade came as the debt watcher
stressed structural reforms being implemented by the Aquino administration are seen continuing beyond 2016.
The debt watcher also commended the country’s strong macroeconomic fundamentals, strong external position, and improving monetary and fiscal policy environment.
Volume traded amounted to P1.03 billion, almost double the P599 million recorded on Thursday.