Peso rebounds to log fresh three-year high

The Philippine peso rebounded against the greenback on Thursday to mark another three-year high, as market players took into consideration the possible easing of lockdown restrictions.

The local currency gained 10 centavos to close at P48.84:$1 from Wednesday's P48.94:$1. This is the best reading of the local currency since it closed at P48.66:$1 on November 10, 2016.

According to Land Bank of the Philippines chief economist Guian Angelo Dumalagan, peso's appreciation came ahead of the end of the modified enhanced community quarantine (MECQ).

"The peso strengthened as local participants remained optimistic over possible easing of lockdown measures in NCR and nearby areas within the month," he said in an email interview.

Metro Manila and the provinces of Bulacan, Laguna, Cavite, and Rizal were again placed under the modified enhanced community quarantine (MECQ) starting August 4 until August 18.

Presidential spokesperson Harry Roque, Jr. earlier on Monday said that the extension is possible, but highly unlikely.

Moving forward, Dumalagan said the market will await US economic data scheduled to be released later this week.

"The local currency might continue appreciating on expectations of weaker US retail sales on Friday," he said. — BM, GMA News