Peso strengthens against US dollar, defying coronavirus concerns

The Philippine peso strengthened against the US dollar on Monday, closing at P50.8:$1 after gaining 3 centavos from last Friday's finish of P50.83:$1.

US treasury yields reached near 4-month lows and also near 3.5-year lows, with the 10-year US Treasury yield at 1.50% levels, reducing the attractiveness of the US dollar.

China’s infusion of $21 billion as markets reopened after the Lunar New Year break supported global financial sentiment, contributing to gains in Asian currencies like the peso.

On Friday, despite concerns over the novel coronavirus, the peso closed stronger at P50.83:$1 from Thursday's 50.96, among the weakest levels in three weeks but also among the strongest in two years.

The death toll in China due to the virus reached 213 with nearly 10,000 infected cases spreading to 18 other countries, prompting a global health emergency declaration by the World Health Organization.

Perceptions that China has taken effective measures to contain the outbreak boosted market sentiment, leading to peso gains on dollar profit-taking near the P51 level.