Peso strengthens on slower inflation, positive market sentiment

The peso strengthened against the US dollar on Tuesday, closing at P50.68 per dollar, an increase of four centavos from Monday's close.

Positive market sentiment driven by slower March inflation and lower global COVID-19 cases contributed to the currency's appreciation.

On Sunday, expectations of easing inflation and government efforts to mitigate the economic impact of the pandemic led to forecasts of further peso strengthening.

RCBC Chief Economist Michael Ricafort attributed Friday’s 13-centavo gain to positive market sentiment following the release of P100 billion for financial assistance to low-income households.