Bloomberg – The Philippine peso rose the most in six weeks against the dollar as Rodrigo Duterte sought to ease investor concerns after claiming victory in the nation’s presidential election.
The currency also strengthened versus all of its 10 Asian peers as preliminary results showed Duterte, the tough-talking mayor of Davao city, won about 39 percent of the vote. He said on Monday it was time to start a process of “healing,” and named potential cabinet members. Uncertainty about his economic plans and lack of policy-making experience had sent investors to the sidelines in the weeks before the election.
“A Duterte win had been flagged for some time now, and the market has already largely priced it in,” said Julian Wee, a senior market strategist at National Australia Bank Ltd. in Singapore. “Going forward, the market will be watching what Duterte does, and the initial signs are mildly positive in that he seems to be making some overtures to the other players in the political establishment. ”
The currency rose 0.7 percent to 46.77 per dollar as of 3:25 p.m. in Manila, after initially dropping as much as 0.3 percent from Friday’s close, prices from the Bankers Association of the Philippines show. The peso declined 1.8 percent in April in Asia’s worst performance. The Philippine Stock Exchange Index jumped 2.6 percent, the most since Jan. 27, ending a two-day drop. Local financial markets were shut on Monday.