Peso extends climb as dimmed stimulus hopes weigh on dollar

The Philippine peso appreciated further against the dollar on Tuesday, as the greenback was dragged by uncertainties over a fiscal stimulus in the United States.

The local currency gained 2 centavos to P48.375:$1 versus Monday's finish of P48.395:$1.

Tuesday's climb came as US lawmakers continue to deliberate on the planned economic stimulus package, with only a week left before the national elections scheduled on November 3.

"PHP followed regional peers as market players continue to watch prospects on US fiscal stimulus," a foreign exchange trader from a local bank said in a phone interview.

US House Speaker Nancy Pelosi was reported to have spoken with Treasury Secretary Steven Mnuchin about COVID-19 relief legislation, and she remains optimistic that a deal can be reached before the elections.

"Fears about COVID-19 resurgence and the continued failure to reach a fiscal policy package between Republicans and Democrats has investors unnerved," Michael Arone, chief investment strategist at State Street Global Advisors in Boston, was quoted as saying in a Reuters report. — BM, GMA News