MANILA – The peso strengthened back to the P49 level against the dollar while shares extended gains on Monday, as foreign investors returned to the local equities market.
The peso closed at P49.705 to the dollar from P50.08 on Friday.
It was the peso's single biggest gain at closing since March 2016 and erased all losses so far this year, according to Bloomberg data.
The Philippine Stock Exchange Index was up 0.45 percent to 7,617.91, its highest level in six months.
Fitch Ratings’ affirmation of the Philippines’ investment grade score affirmed the country’s strong economic fundamentals, attracting foreign investors, Eagle Equities president Joey Roxas said.
The US market is also ripe for a correction, after it rallied on US President Donald Trump’s election win, he said.
“It’s time for that market to correct and the money to come back to the Philippines,” Roxas said.
“We have the fundamentals. This rally will continue after the Holy Week,” he said.
Investors are expected to stay on the sidelines for the rest of the week, with financial markets closed on Thursday and Friday.