Peso strengthens as BSP keeps rates unchanged

The Philippine peso strengthened against its US counterpart for the third consecutive trading day on Thursday, driven by the decision of the central bank to keep rates steady amid easing inflation concerns.

The local currency gained 9.5 centavos to close at P52.62:$1 from Wednesday's P52.715:$1.

"Peso stronger today at P52.62 from the previous day's P52.715 amid the widely expected BSP decision to keep its policy rates unchanged due to easing inflation, which supports the peso," Michael Ricafort, economist at the Rizal Commercial Banking Corp., said in a text message.

The BSP on Thursday decided to keep key policy rates unchanged -- the overnight borrowing rate was kept at 4.75 percent, the overnight lending rate at 5.25 percent, and the overnight deposit rate at 4.25 percent.

It also lowered its inflation forecasts for 2018 to 2022, citing lower food and oil prices.

"Peso also stronger ahead of the seasonal surge in the conversion of OFW remittances to pesos especially one to two weeks before Christmas for Yuletide-related spending," added Ricafort. — RSJ, GMA News