Peso resumes appreciation, carves fresh three-year high

The Philippine peso again marked a fresh three-year high on Wednesday, following the release of local economic data.

The local currency gained 2 centavos to close at P49.075:$1 from Tuesday's finish of P49.095:$1. This is the strongest reading in over three years since it closed at P48.95:$1 on November 11, 2016.

Land Bank of the Philippines chief economist Guian Angelo Dumalagan attributed Wednesday's appreciation to the local economic data released by the Philippine Statistics Authority (PSA).

"The peso appreciated today following the release of stronger-than-expected Philippine inflation reports for July," he said in an email interview.

Inflation clocked in at 2.7% in July, the fastest since the 2.9% in January this year.

The PSA is also scheduled to release second-quarter economic growth data on Thursday, August 6, 2020, with economists expecting a wider contraction than seen in the first quarter.

The growth rate in January to March was revised to -0.7%, worse than the initially reported -0.2%.

"The local currency might weaken on market expectations of a sudden contraction in the second-quarter Philippine economic growth report tomorrow," said Dumalagan. — BM, GMA News