The Philippine peso closed at a seven and a half year high against the US dollar on Monday after investors took last week’s failed siege on a Makati Hotel as a sign that the country’s political front is stable.
The local currency finished the day at 42.305 versus the dollar, its highest closing level since May 22, 2000 when it ended at 41.915 against the greenback.
In a market report, international lender Morgan Stanley said the Makati standoff led by Senator Antonio Trillanes IV, which ended with the senator’s surrender six hours later, showed that the public would not support an extra-constitutional regime change.
“Rather than being a negative shock for the peso, we interpret this failed coup attempt as a confirmation of our call that the Philippine political backdrop remains stable,” Morgan Stanley said.
The peso touched a high of 42.27, and a low of 42.55 against the greenback during midday.
Volume traded reached $621.1 million.