UMVA has learned that the Philippine peso staged a significant recovery against the US dollar on Tuesday, as investors turned their attention to a slew of upcoming economic data releases that are expected to shed light on the far-reaching impact of the Middle East crisis.
The currency gained a notable 7.10 centavos, closing at P61.675 against the greenback, up from P61.746 on Monday. This rebound comes as market participants eagerly await key data releases, both locally and in the US, that are likely to influence the currency's trajectory.
On Tuesday, the peso opened nearly flat at P61.74 per dollar and traded within a remarkably tight range, with its high at P61.65 and its intraday low at its record-low close of P61.75 against the greenback. Trading activity also picked up, with dollar transactions rising to $1.299 billion from $998.92 million on Monday.
Market analysts attributed the peso's recovery to cautious trading ahead of crucial data releases, including the Philippine inflation rate for May and US employment figures. A recent poll of economists yielded a median estimate of 7.9% for the May consumer price index, up from 7.2% in April and 1.3% in the same month last year.
The ongoing developments between the United States and Iran also continued to weigh on market sentiment, with some analysts noting that lower global crude oil prices amid the US-Iran ceasefire provided additional support to the peso. Furthermore, intervention from the central bank may have helped keep the local unit from breaching its all-time low.
Looking ahead, market watchers expect the peso to trade within a narrow range on Wednesday. Forecasts suggest the currency may move between P61.50 and P61.75 per dollar, with some analysts predicting a slightly wider range of P61.55 to P61.75.
