BW FILE PHOTO

THE PESO strengthened against the greenback on Tuesday following the announcement of the government’s euro-denominated bond offer.

The local unit closed at P48.32 per dollar on Tuesday, appreciating by three centavos from its P48.35 finish on Monday, data from the Bankers Association of the Philippines showed.

The local unit opened the session at P48.33 per dollar. Its weakest showing was at P48.34 while its intraday best was at P48.27 against the greenback.

Dollars exchanged fell to $684.6 million from $784.3 million on Monday.

The peso appreciated versus the dollar after the announcement of the government’s euro-denominated bond issuance, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

“Proceeds of the borrowings could add to the country’s gross international reserves,” Mr. Ricafort said in a text message.

Citing a Philippine government filing with the US Securities and Exchange Commission (SEC), Bloomberg on Monday reported the government is eyeing to offer debt papers with tenors likely of four years, 12 years, and/or 20 years.

The papers will be senior unsecured bonds registered with the US SEC while volume will be based on benchmark levels. 

The government last issued euro-denominated bonds in January 2020, raising €1.2 billion via its dual-tranche offering.

Meanwhile, a trader attributed the peso’s gains to profit taking amid lower US interest rates.

For today, Mr. Ricafort expects the local unit to move within the P48.27 to P48.37 levels versus the dollar while the trader gave a forecast range of P48.25 to P48.45. — LWTN