Peso rebounds ahead of economic data release

The peso rebounded against the greenback on Tuesday, ahead of the release of economic data both in the Philippines and the United States.

The local currency gained 7.5 centavos to close at P50.52:$1 versus Monday's finish of P50.595:$1.

"The local currency strengthened today amid likely sharp declines in US manufacturing and services reports tonight," Guian Angelo Dumalagan, market economist at the Land Bank of the Philippines, said in an email interview.

Data released by the Institute for Supply Management (ISM) indicated that US manufacturing activity plunged to an 11-year low in April, as the coronavirus disease 2019 (COVID-19) disrupted supply chains.

Locally, the Philippine Statistics Authority (PSA) reported a contraction in the local manufacturing sector in March, as lockdowns hit factory operations.

Moving forward, the PSA is scheduled to release more economic data later this week -- March trade data and first-quarter agriculture performance on Wednesday, and first-quarter economic growth on Thursday.

"The local currency might depreciate as participants might remain cautious ahead of the Philippine GDP report on Thursday," said Dumalagan. — RSJ, GMA News