Peso rebounds ahead of monetary policy meeting

The Philippine peso rebounded against the greenback on Tuesday, buoyed by optimism on the global recovery following the coronavirus disease 2019 (COVID-19) pandemic.

The local currency gained 1.1 centavos to close at P48.038:$1 versus Tuesday's finish of P48.049:$1.

This comes as market players reconsidered how much government stimulus spending, central bank policies, and vaccinations will boost the economy moving forward.

"Everyone is feeling bullish about stronger demand and global inventories in further decline," John Kilduff, partner at Again Capital LLC in New York, was quoted as saying in a Reuters report.

Locally, the market is awaiting the monetary policy meeting of the central bank's Monetary Board on Thursday, February 11.

"The market's expecting the [Bangko Sentral ng Pilipinas] to remain dovish," a foreign exchange trader from a local bank said in a separate phone interview. -MDM, GMA News