THE PESO appreciated against the dollar on Tuesday after the Bangko Sentral ng Pilipinas said it would expand the transactions covered by its Currency Rate Risk Protection Program (CRPP).

The local currency closed at P55.54 versus the dollar on Tuesday, rising by 23 centavos from Monday鈥檚 P55.77 finish, data from the Bankers Association of the Philippines鈥 website showed.

The local unit opened Tuesday鈥檚 session at P55.65 per dollar, which was also its worst showing for the day. Its intraday best was at P55.43 versus the greenback.

Dollars traded went up to $1.27 billion on Tuesday from the $1.21 billion recorded on Monday.

The peso climbed against the dollar after the BSP announced that it would expand the coverage of its CRPP to include non-trade transactions and investments, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The CRPP offers non-deliverable forward contracts as an alternative to sourcing US dollars and could 鈥渟omewhat ease pressure from the local foreign exchange spot market,鈥 Mr. Ricafort said.

鈥淭he peso reacted positively to the BSP鈥檚 announcement of an expanded Currency Rate Risk Protection Program,鈥 a trader likewise said in a Viber message.

The BSP also expanded the coverage of the CRPP to include sector foreign currency borrowings from both the public and private sector. It added foreign merchandise trade transactions, non-trade account and resident-to-resident foreign exchange transactions, and outward investments.

鈥淎s such, due to the possibility of renewed depreciation pressure in the peso following the continued interest rate hikes by the Fed (US Federal Reserve), we would like to remind all universal and commercial banks that the CRPP facility remains open,鈥 BSP Deputy Governor Chuchi G. Fonacier said.

For Wednesday, Mr. Ricafort sees the peso moving from P55.40 to P55.60 per dollar, while the trader said that the peso could trade between P55 and P56 for the rest of the week. 鈥 AMCS

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