Peso hits over 4-year high vs USD on vaccine hopes

The peso closed at 48.145 against the US dollar on Tuesday, marking one of its strongest levels in over four years, driven by positive vaccine developments and a weaker US dollar.

Rizal Commercial Banking Corporation (RCBC) chief economist Michael Ricafort attributed the peso's strength to continued positive developments on COVID-19 vaccines, particularly from AstraZeneca/University of Oxford.

The strengthening of the peso was also influenced by the US dollar declining to a 2.5-year low, reflecting an improved global market risk appetite in emerging markets like the Philippines.

Conversely, the Philippine Stock Exchange index (PSEi) slipped by 0.97% to close at 7,108.67 points on Tuesday, ending a two-day rally.

Most other stock counters followed the PSEi's decline, with the Mining and Oil index experiencing the largest drop.

The PSEi's dip was described as a healthy correction or profit-taking after recent substantial gains, though it remains near an eight-month high.