Peso firms up on BSP intervention

Despite trading weaker intra-day, the Philippine peso managed rebounded against the dollar at the close of trading Tuesday, propped up by the Bangko Sentral ng Pilipinas (BSP).

There was also profit-taking on gains from the dollar.

"Earlier in the session, the peso was trading at a low of P50.870:$1 but it closed stronger due to profit-taking. At the same time, there is BSP intervention," a trader from a local bank said.

"When the BSP entered the scene, a sell-off took over. Investors sold dollar positions as well, so the peso strengthened drastically," the trader noted.

The local currency gained 16.5 centavos to close at P50.530:$1 from 50.695 on Monday – still within its weakest level since September 1, 2006 when it closed at P50.735:$1.

BSP Governor Nestor Espenilla Jr. earlier said that there is "nothing particularly unusual" with the peso's 11-year low depreciation, noting that the central bank is "managing excessive volatility." — VDS, GMA News