FX.co ★ Philippine Peso Hits Near 4-Month High

The Philippine peso strengthened toward 58 per dollar in mid-February, reaching its highest level since October after hitting record lows in January. The recovery has been underpinned by renewed capital inflows and a rally in local equities, with foreign investors purchasing about $266 million worth of Philippine stocks so far this year. The benchmark PSE Index has gained roughly 8% year-to-date, approaching its highest level in a year. These advances come on the back of intensified government efforts to rebuild business and investor confidence following a major corruption scandal that prompted capital outflows late last year. The peso has also drawn support from expectations that the Philippine central bank is nearing the end of its easing cycle, after consumer inflation accelerated to the 2% target in January.