Peso rebounds vs. US dollar

The Philippine peso rebounded against the US dollar on Monday, driven by sustained flows following the release of overseas economic data.

The local currency gained 34 centavos to close Monday at P50.63:$1 from last Friday's P50.97:$1.

"Peso gained on sustained flows after China’s PMI fell more than expected, progressing throughout the day and propping up local currency," Robert Dan Roces, assistant vice president and chief economist at Security Bank Corp., said in an email interview.

The Caixin/Markit Manufacturing Purchasing Managers' Index (PMI) fell to 40.3 in February, down from the 51.1 reading in January, and the lowest since the survey started in 2004, according to Reuters.

The PMI is a composite indicator of the manufacturing sector’s performance, with 50.0 as the threshold. A reading above 50 indicates growth, while below 50 is a contraction.

Locally, the IHS Markit Philippines Manufacturing PMI edged up fractionally to 52.3 in February from 52.1 in January.

The Philippine Statistics Authority (PSA) is scheduled to release official government data on the manufacturing sector for February on April 7. — RSJ, GMA News