Peso hovers near 18-month high as dollar weakens

ABS-CBN News

Posted at Jul 16 2019 06:01 PM | Updated as of Jul 16 2019 07:01 PM

MANILA – The Philippine peso on Tuesday reached its strongest since January 2018 as the US dollar continued to weaken amid the expectation of further monetary policy easing by the Federal Reserve.

The peso closed at P50.90 to a dollar Tuesday from Monday's P51, its strongest level in nearly 18 months. 

Philippine shares also remained within the bull market territory despite losing 1.2 percent at 8,263 level on Tuesday. 

"It's more an expectation of a Fed rate cut. The US Fed Chair highlighted the possibility of a rate cut which caused the US dollar to weaken and the PHP (Philippine Peso) to appreciate as a consequence," BDO chief market strategist Jonas Ravelas said. 

The US Federal Reserve may initiate a series of cuts depending on the global economic conditions, Ravelas said.