Peso rebounds on easing concerns over US rate hike

The Philippine peso rebounded against the US dollar on Tuesday, following easing concerns of a US rate hike.

The local currency gained 3 centavos to close Tuesday at P52.77:$1 versus Monday's finish of P52.8:$1.

In an email interview, Land Bank of the Philippines market economist Guian Angelo Dumalagan said the peso's strength was driven by easing concerns over the possible US rate hike this month.

"The peso slightly strengthened as the dollar strength wavered on increasing bets of dovish cues from the US Federal Reserve in their policy meeting next week..." he said.

The Federal Open Market Committee—the US central bank's policy-setting body—is scheduled to meet on December 18 and 19 to discuss whether or not a change in policy rates is warranted.

Locally, the Monetary Board of the BSP is scheduled to meet on Thursday, December 13.

"The peso may continue its uptrend towards the end of the week amid possible hawkish hints from the European Central Bank and bets of a more optimistic tone from the Bangko Sentral ng Pilipinas in its meeting this month," said Dumalagan. — BM, GMA News