Peso rebounds back to P49:$1 level

The Philippine peso rebounded back to the P49:$1 level on Wednesday, buoyed by the foreign reserves data released by the central bank.

The local currency gained 21 centavos to close at P49.98:$1 from Tuesday's finish of P50.19:$1.

According to Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort, Wednesday's appreciation was driven by the gross international reserves (GIR).

"The peso exchange rate closed stronger today at P49.98:$1, the strongest in two weeks, after the record-high GIR data," he said in a mobile message.

The Bangko Sentral ng Pilipinas (BSP) late Tuesday reported foreign exchange reserves at $2.35 billion as of end-May, driven mainly by the increase in deposits of the national government from its bonds issuance.

"Peso also stronger after some improvement in global market sentiment after US President Trump reassured that the US-China phase one trade deal remains intact, after earlier confusion," said Ricafort.

"Trump's reassurance led to some decline in the US dollar vs. major Asian/global currencies such as the peso," he added. — RSJ, GMA News