Peso extends winning streak vs. dollar

The Philippine peso continued to appreciate against the greenback on Tuesday, driven by the gains in the local bond market.

The local currency gained 2.5 centavos to close at P49.83:$1 versus Monday's finish of P49.855:$1.

According to Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort, Tuesday's appreciation came after gains in local bonds.

"The peso exchange rate closed stronger today... consistent with the recent hefty gains in the local fixed income/bond markets since the surprise 0.50 BSP rate cute since late last week," he said in a mobile message.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) last week cut key policy rates by another 50 basis points to bring the overnight reverse repurchase facility to 2.25%, the overnight deposit facility to 1.75%, and the overnight lending to 2.75%.

Ricafort also noted that peso also appreciated amid signals about further monetary policy easing, with a reduction in the reserve requirement still on the table. — BM, GMA News