The local currency closed at 50.90, up by 10 centavos from Monday’s rate of 51 to $1. It hit an intraday high of 50.88 to $1. This was the highest level for the peso since closing at 50.84 to $1 on Jan. 26, 2018.
AFP
Peso pierces 50:$1 mark, closes at 18-month high
Lawrence Agcaoili (The Philippine Star) - July 17, 2019 - 12:00am

MANILA, Philippines — The peso gained 10 centavos yesterday, piercing the 50 to $1 level amid easing inflation as well as the dovish Bangko Sentral ng Pilipinas (BSP) and US Federal Reserve.

The local currency closed at 50.90, up by 10 centavos from Monday’s rate of 51 to $1. It hit an intraday high of 50.88 to $1. This was the highest level for the peso since closing at 50.84 to $1 on Jan. 26, 2018.

Trading volume was heavy, jumping 40.3 percent to $1.04 billion from $744.96 million last Monday.

Metrobank’s FirstMetroSec said the peso may range between 50.50 and 51.30 versus the greenback this week after BSP

Governor Benjamin Diokno hinted of a more aggressive interest rate cuts particularly in the third quarter amid easing inflation and the dovish US central bank.

Diokno is looking initially at another interest rate cut before further reducing the reserve requirement ratio.

Nicholas Mapa, economist at ING Bank Manila, said the peso continues to benefit from foreign inflows as investors gobbled up more Philippine stocks.

Mapa said expectations for a US Fed rate cut in July coupled with the possibility of a rate cut or two from the BSP in the third quarter have boosted investors’ hopes for strong growth after a slowdown in the first quarter.

The BSP pushed the pause button last June 20 after slashing interest rates by 25 basis points on May 9 due to easing inflation and slower-than-expected gross domestic product (GDP) growth of 5.6 percent in the first quarter.

Likewise, the Metrobank arm said US Fed chairman Jerome Powell guaranteed that a rate cut would happen despite mixed reactions from the market.

BANGKO SENTRAL NG PILIPINAS US FEDERAL RESERVE
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