MANILA, Philippines—The peso rose to its highest in more than four years on Wednesday as the market reacted positively to the reelection of US President Barack Obama, a development seen to allow the world’s biggest economy to pursue his administration’s reforms aimed at a more substantial recovery.
The local currency closed at 41.06 against the US dollar, up by 15 centavos from the previous day’s finish of 41.21:$1.
Intraday high hit 41.05:$1, while intraday low settled at 41.215:$1.
Volume of trade amounted to $968 million from $750.7 million previously.
Wednesday’s close was the highest in over four years, market data showed. The last time the peso closed stronger than 41.06 against the greenback was on March 7, 2008, when it finished at 40.85:$1.
Traders said the announcement of the results of the US presidential election has somewhat removed the cloud of uncertainty surrounding the supposed implementation of several fiscal reforms to help address the US government’s debt problems.
By the end of this year, taxes related to the Obama administration’s health care law, as well as certain budget cuts and lifting of some tax perks for businesses to help put the fiscal house in order are scheduled for implementation.
Traders said that with the election over, some investors went out of the sidelines and purchased emerging market assets, thereby lifting Asian currencies, including the peso.