Peso appreciates as BSP says exit from accommodative policy still unwarranted

The Philippine peso appreciated against the US dollar on Thursday, ahead of the announcement of the monetary policy decision of the Bangko Sentral ng Pilipinas (BSP).

The local currency gained 8.5 centavos to close at P48.58:$1 versus Wednesday's finish of P48.665:$1.

"The local currency appreciated after BSP Governor Diokno hinted earlier today that prematurely ending accommodative policy is still unwarranted ahead of the BSP policy meeting," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an email exchange.

BSP Governor Benjamin Diokno earlier said it is still too early for the central bank to start its COVID-19 exit strategy, as the timing will largely depend on economic data.

Thursday's close came minutes before Diokno announced that the Monetary Board decided to keep policy rates at record lows -- the overnight reverse repurchase facility at 2.00%, overnight deposit at 1.5%, and overnight lending facility at 2.5%.—LDF, GMA News