The peso inched closer to the psychological 50 to one US dollar while stocks slumped once on Tuesday.

The peso slumped to a low of P45.92: $1 before rallying a bit to close at P49.85:$1 on higher volume of $520 million at the Philippine Dealing System. On Monday, the peso closed at P49.83:$1 on volume of $391.60 million.

The Philippine currency is at its weakest in eight years due to the strong dollar. On November 20, 2008, the peso closed at P49.99:$1.

On Tuesday, news reports said President Rodrigo Duterte offered a fresh term to current central bank governor Amando Tetangco Jr. If Tetangco accepts, the law fixing central governors to two terms will be amended.

The Philippine Stock Exchange composite index closed 176.33 points lower to 6,802.73 points.

Among index heavyweights, Ayala Corp. went down by 5 percent to P731.50, Ayala Land lost 4.24 percent to P31.60, Metrobank declined 3.01 percent to P74 and SM Investments Corp. shed 5.97 percent to P39.50. DMS