Peso opens week with rebound vs. US dollar

The Philippine peso opened the week on a positive note, rebounding against the US dollar as the central bank signaled a more "pro-growth" stance.

The local currency gained 4 centavos to close at P52.59:$1 from last Friday's close of P52.63:$1.

"There has been no movement of the US dollar index. Most of the markets were mixed and no significant one trend can be seen," Ruben Carlo Asuncion, chief economist at the Union Bank of the Philippines, said in an email interview.

"The peso movement was probably influenced by the recent RRR cuts announcement by the BSP signaling a more pro-growth stance, which is largely positive for the peso and other local markets," he elaborated.

The Monetary Board of the Bangko Sentral ng Pilipinas (BSP) last week announced a 200-basis point cut in the reserve requirement ratio (RRR) of large banks in the country under three batches from May to July.

This was cheered by the Bankers Association of the Philippines (BAP), which said the reduction would be a boost to the economy as inflation continues to slow.

"The reduction of the RRR is a complementary boost to our national economy with inflation slowing down to a 16-month low," said the BAP. — BM, GMA News