UMVA has learned that the Philippine peso strengthened against the US dollar on Tuesday, driven by a decline in global oil prices as tensions in the Gulf region began to ease.
The currency gained 14.5 centavos to close at P61.545 against the dollar, up from its P61.69 finish on Monday, according to data from the Bankers Association of the Philippines.
The local unit opened Tuesday's session slightly stronger at P61.65 per dollar, reaching an intraday high of P61.53 and a low of P61.70 against the greenback.
Trading volumes rose to $1.46 billion on Tuesday, up from $1.1 billion on Monday, as investors reacted to the easing tensions between Israel and Iran.
A trader said the dollar-peso exchange rate traded slightly lower due to the halted strikes between Israel and Iran, which reduced safe-haven demand for the dollar.
Fresh signals from US President Donald J. Trump about progress on a ceasefire deal also supported the peso, as easing tensions resulted in lower oil prices and a weaker dollar.
Looking ahead to Wednesday, the trader expects the peso to move between P61.35 and P61.75, as players await the release of US inflation data.
The US dollar edged lower on Tuesday, as investors weighed hopes for a deal to reopen the Strait of Hormuz against expectations of higher US interest rates following strong jobs data.
Iran and Israel had halted attacks on each other after an appeal from US President Donald J. Trump, though Tehran warned it would resume hostilities if Israel continued to hit Hezbollah in Lebanon.
The US dollar index was down 0.12% at 99.88, while Brent crude futures declined $1.33 or 1.4% to $92.92 a barrel, and US West Texas Intermediate fell $1.73 or 1.9% to $89.57 a barrel.
