Peso recovers slightly to P62.725 vs $1

The Philippine peso recovered slightly against the US dollar, after two straight days of decline, amid optimism arising from anticipated diplomatic efforts to resolve the Middle East crisis.

The local currency gained 5.5 centavos to close at P62.725:$1 on Tuesday, from P62.78:$1 on Monday.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso’s recovery came after global crude oil prices hovered near two-week lows ahead of possible talks and other diplomatic efforts this week related to the war in Middle East on the sidelines of the UN General Assembly in New York.

“Local market sentiment was also party support by the conclusion of the Philippines-European Union Free Trade Agreement (FTA),” Ricafort said.

The economist also cited the seasonal increase in importation activities in the third quarter or about one week to go before September ends, to ramp up local production activities in preparation for the seasonal increase in demand locally and in the export markets in the fourth quarter. — BAP, GMA News