Peso firms up as US rate hike worries spark sell-off

The Philippine peso appreciated against the dollar on Tuesday as speculations about an interest rate increase in the US led to a sell-off in the greenback.

A dollar bought P46.460, down 12 centavos from 46.580 on Monday.

"Today's peso-dollar movement was mainly driven by a sell-off of the US dollar," Cherica Vicente, research analyst at MetisEtrade, said in an emailed commentary.

Vicente noted that the greenback was down against most of its peers as "dollar investors turn cautious ahead of more hints regarding the possibility of an interest rate hike sooner than expected."

BPI Asset Management said in its daily market recap that investors sat on the sidelines while waiting for critical commentary from senior Fed officials at the end of this week's Jackson Hole economic symposium in Wyoming. — Ted Cordero/VDS, GMA News