Peso extends winning streak as US Treasury yields decline

The Philippine peso strengthened further against the dollar on Wednesday, as the greenback was weighed down by the drop in US Treasury yields.

The local currency gained 5 centavos to close at P50.65:$1 from Tuesday's finish of P50.7:$1.

"The PHP/USD pair dropped on the session after following suit with the decline in US Treasury yields," a foreign exchange trader from a local bank said in a phone interview.

US Treasury yields fell back under 0.7%, Reuters reported, as US Federal Reserve chair Jerome Powell did not shed new light on the government's economic response to the coronavirus disease.

Wednesday was the second consecutive trading day that the peso appreciated against the US dollar, following the rebound on Tuesday. — RSJ, GMA News