Peso appreciates as US yields weigh on dollar

The Philippine peso strengthened against its US counterpart on Monday, as US treasury yields weighed on the greenback.

The local currency gained 3 centavos to close at P50.8:$1 versus last Friday’s finish of P50.83:$1.

“Most Asian currencies strengthened vs. the US dollar after US government bond yields reached near 4-month lows and also near 3.5-year lows, with the 10-year US Treasury yield at 1.50% levels, thereby reducing the attractiveness/allure of US dollar,” Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a mobile message.

“China’s infusion of $21 billion as markets re-opened after the long Lunar New Year break also supported sentiment on the global financial markets, partly supporting the latest gains in Asian currencies such as the peso,” he elaborated.

According to Ricafort, global market sentiment also “somewhat” improved after stringent measures were imposed to contain the 2019 novel coronavirus (nCoV). — Jon Viktor D. Cabuenas/RSJ, GMA News