Peso is only Asian currency to rise versus dollar this month

Bloomberg – Rodrigo Duterte is reinvigorating financial markets in the Philippines with his transformation into a business-friendly leader.The peso is alone among Asian peers in gaining versus the dollar this month and is also the best performer in emerging markets worldwide. That’s a contrast to April, when it dropped against all of its regional counterparts as Duterte made a range of inflammatory comments before the presidential vote. Having won the May 9 election, he now says he’s open to greater foreign ownership of businesses and will seek to eliminate corruption in the tax system.

Peso Vs Dollar

 

“President-elect Duterte has conducted himself more as a statesman rather than a campaign brawler,” said Joey Cuyegkeng, an economist at ING Groep NV in Manila. “He’s now toning down and facing reality on what has to be done. Market-friendly actions would help sustain the peso’s strength.”

The Philippine Composite Stock Index climbed to a nine-month high Friday and has the highest valuation among Asian equities based on current-year estimated earnings. The nation’s government bonds returned 0.7 percent in the past month, the best performance in Asia, with 0.5 percent of that coming in the three days following the vote, based on Bloomberg indexes.

Source: Bloomberg

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