Peso extends winning streak for 5th consecutive session

The Philippine peso appreciated against the dollar for the fifth straight trading session on Monday, buoyed by optimism ahead of the Group of 20 Summit later this year.

The local currency gained 18 centavos to close at P51.39:$1 versus last Friday's P51.57:$1.

"The peso strengthened on market optimism ahead of the G-20 Summit wherein Presidents Trump and Xi are expected to hold an 'extended meeting' concerning their trade conflicts," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in a text message.

His sentiments were echoed by Michael Ricafort, economist at the Rizal Commercial Banking Corp. (RCBC).

"Ahead of trade talks between the US and China later this month at G-20 in Osaka, Japan and amid increased geopolitcal risks due to increased tensions between the US and Iran," Ricafort said.

"Lower US benchmark bond yields and more dovish Fed signals (possible Fed rate cut/s) caused renewed weakness in the US dollar vs. major currencies (including the peso)," he added.

Citing reports from Chinese state-run Xinhua news agency, Reuters said Chinese President Xi Jinping is expected to attend the G20 Summit in Japan this week, where he is likely to meet US President Donald Trump.

The news came after US Vice President Mike Pence on Friday decided to call off a planned China speech, which in turn, had also increase optimism on the trade talks between the world's biggest economies. — RSJ, GMA News