BENGALURU: The Philippine peso was among the top Asian emerging currencies on Tuesday due to fading chances of an imminent interest rate cut, while other currencies also gained ground as the dollar held steady.

The peso added 0.5% against the greenback, while stocks in Manila closed 0.6% in the green.

The country’s inflation unexpectedly accelerated to a nine-month high, data showed last week, and the central bank governor Eli Remolona said there was space to keep monetary policy tight until inflation is tamed.

That could likely mean the central bank will not lower rates when it meets on Aug. 15, said Ruben Carlo O. Asuncion, chief economist at the Union Bank of Philippines.

The Indonesian rupiah was the top gainer among its peers, strengthening 0.8% amid improving domestic economic conditions.

The Malaysian ringgit and Thai baht added 0.2% each against the US dollar.

The dollar was in limbo as investors waited to see how US inflation data, due on Wednesday, affects the chance of outsized rate cuts by the Federal Reserve.

Equities across the region were also mostly upbeat, with stocks in Singapore and Indonesia leading the gains, rising 0.7% each.

Singapore’s Ministry of Trade and Industry said it now expects 2%-3% growth for the year, versus its prior view of 1%-3%.

“We expect a continued gradual pick-up in growth in the second half of year, supported by the electronics cluster, the ongoing tourism recovery, improving external demand amid easier global monetary policy, and a robust albeit moderating labour market,” Standard Chartered said in a note.

Bucking the regional trend, Indian shares fell 0.4%, weighed down by HDFC Bank on lowered expectations of inflows into the stock.