THE currency strengthened enough to return to the P57:$1 level on Tuesday, but the stock market fell for a third straight day following reports that interest rate cuts could stay higher for longer.

The currency strengthened by 14 centavos to P57.97 against the dollar while the benchmark Philippine Stock Exchange index (PSEi) briefly touched the 6,400 level before finally shedding 70.26 points, or 1.07 percent, to end the day at 6,501.34.

The broader All Shares index also dropped, by 25.34 points, or 0.72 percent, to 3,484.74.

The peso opened at the day's high of P58.07:$1 and traded as low as P57.9 to the greenback. Volume reached P1.244 billion, markedly higher than the P791 million recorded in the previous session.

"The peso closed stronger again after the gauge of the US dollar vs. major global currencies again eased to near 1-week lows," Rizal Commercial Banking Corp. chief economist Michael Ricafort said.

Philstocks Financial Inc. Research and Engagement Officer Mikhael Plopenio said that investors "primarily ... digested the results of the BSP's (Bangko Sentral ng Pilipinas) latest survey which showed that the majority of respondent analysts project policy rates to remain unchanged in Q3 2024."

"Also digested was BSP Senior Assistant Governor Iluminada Sicat's remarks, saying that upside risks to inflation remain, causing the BSP to remain restrictive with its policy," he added.

Sector indices mostly closed in the red, with property down the most by 1.84 percent. Mining and oil, and financials were the only gainers, respectively riding by 1.49 percent and 1.0 percent.

Declines outnumbered gainers, 102 to 93, while 35 were unchanged.