Peso carves another four-year high on continued support from BSP rate cut

Published November 23, 2020 06:45 PM By JON VIKTOR D. CABUENAS, GMA News

The Philippine peso appreciated further on Monday to carve another four-year high, still on support from the fresh rate cut by the Bangko Sentral ng Pilipinas (BSP) last week.

The local currency gained 2.5 centavos to close at P48.205:$1 versus last Friday's finish of P48.23:$1. This is the strongest showing of the peso in over four years since it closed at P48.19:$1 on October 24, 2016.

"The peso exchange rate again closed stronger vs. the US dollar... on continued gains in the local financial markets after the surprise BSP rate cut that further lowers borrowing costs and the resulting altest gains in the local stock market to the highest in almost 9 months," Michael Ricafort, economist at the Rizal Commercial Banking Corp., said in a mobile message.

The BSP on Thursday last week cut key policy rates

effective Friday, November 20, 2020, to new record lows — the overnight reverse repurchase (RRP) facility at 2%, the overnight deposit at 1.5%, and the overnight lending facility at 2.5%.

Ricafort noted that the peso strength came also after the local stock market reached eight-month highs and some gains in the local bond markets, as well as developments on the possible vaccines for COVID-19.

The Philippines on Monday reported 1,799 new infections to bring the total confirmed cases to 420,614. This includes 386,604 recoveries and 8,173 deaths.—AOL, GMA News
 

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