Peso continues winning streak as more lockdown restrictions eased

The Philippine peso continued to appreciate against the US dollar on Wednesday, driven by optimism after more countries opened the possibility of easing lockdown restrictions put in place to curb the spread of the coronavirus disease 2019 (COVID-19).

The local currency gained 16 centavos to close at P50.51:$1 from Tuesday's finish of P50.67:$1.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, Wednesday's appreciation was brought about by optimism to reopen economies.

"The peso exchange rate closed at P50.51, the strongest in more than 1.5 months and among the strongest in two years... amid recent optimism about possible easing of the lockdown after May 15, 2020," he said in a mobile message.

The enhanced community quarantine -- which has already been extended twice -- will lapse on May 15, two months after it was first ordered on March 17.

"More countries around the world are preparing the reopening of their respective economies in view of recent easing of new COVID-19 cases and fatalities in some hard-hit countries especially in Europe," said Ricafort.

France and Spain were among the latest to announce plans to ease restrictions and allow establishments such as restaurants to gradually reopen, following Italy.

"Peso continued to strengthen amid the recent easing trend in global oil prices that declined to lowest levels in 20-30 years that could help further lower inflation," added Ricafort. — RSJ, GMA News