Peso extends winning streak to mark two-year high

The Philippine peso continued to appreciate against the US dollar on Monday, marking its strongest showing in over two years.

The local currency gained 12 centavos to close at P50.3:$1, stronger than last Friday's finish of P50.42:$1. It is also the strongest finish of the peso since January 9, 2018.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, Monday's appreciation came after remarks made by Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno.

"The peso exchange rate closed stronger today at P50.30, the strongest in more than two years... after BSP Governor Diokno reiterated signals about possible pause in monetary policy easing at the moment," he said in a mobile message.

Diokno earlier said that the current settings remain apt at the moment, and macroeconomic fundamentals are sound, but the road to an "A" credit rating should take a backseat to efforts against the coronavirus disease.

"Peso also stronger amid some optimism in the global financial markets about preparations for reopening many economies around the world from the lockdown, including the Philippines, in the coming days," said Ricafort.

Metro Manila, along with several "high-risk areas," has been on lockdown since March 17, with the enhanced community quarantine already having been extended twice to last until May 15. —LDF, GMA News