Peso surges to four-month high as funds flow to Asian markets

THE PESO strengthened to a fresh four-month high against the dollar on Thursday, joining a regional rally amid growing appetite for Asian assets.

The local unit surged by 17.5 centavos to close at P58.115 versus the greenback from its P58.29 finish on Wednesday, data from the Bankers Association of the Philippines showed.

This was the peso’s strongest finish in almost four months or since it closed at P58.055 on Oct. 15, 2025.

The local currency opened Thursday’s trading session stronger at P58.18 against the dollar. Its intraday low was at P58.26, while its best showing was at P58.09 against the greenback.

Dollars traded increased to $1.62 billion from $1.46 billion on Wednesday.

“The peso appreciated along with regional peers, buoyed by the rally in Asian equities amid optimism on Asia’s exceptionalism trade,” a trader said in a phone interview.

The currency rose on “bigger gains in Asian stock markets recently amid some increased fund flows to emerging markets, especially in Asia, that partly benefited Philippine financial markets,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.

He added that the peso was stronger as the dollar stayed near multi-month lows,

For Friday, the trader sees the peso moving between P58 and P58.40 per dollar, while Mr. Ricafort expects it to range from P58 to P58.20.

Asian stocks rose to a record high on Thursday, while the dollar firmed against most currencies except the yen after a surprisingly strong US jobs report dented near-term rate cut expectations, setting the stage for inflation data on Friday, Reuters reported.

Markets in South Korea and Japan hit all-time peaks, lifted by the technology sector. That lifted MSCI’s broadest index of Asia-Pacific shares to another record. The index was 0.7% higher, taking its gains in the first six weeks of the year to about 13%.

Investor focus this week is on a batch of US economic reports with the data on Wednesday showing job growth unexpectedly accelerated in January while the unemployment rate eased a touch, signaling labor market stability that could encourage the Federal Reserve to leave rates unchanged in the near term.

The elevated yields helped support the under-pressure dollar, which rebounded a bit against most currencies. Analysts, though, point out that uncertainties on Fed independence and policy risks suggest that the dollar will need more such positive surprises in data to sustain the rebound. — A.M.C. Sy with Reuters