Peso rebounds ahead of inflation data release

The Philippine peso rebounded against its US counterpart on Monday, ahead of the release of local economic data later this week.

The local currency gained 7.5 centavos to close at P48.405:$1 versus last Friday's finish of P48.48.

Monday's appreciation came ahead of the release of September inflation data and August manufacturing data on Tuesday, October 6; and August trade data on Friday, October 9.

"Peso exchange rate stronger a day before inflation data that is expected to remain benign," Michael Ricafort, chief economist at the Rizal Commercial Banking Corp. (RCBC), said in a mobile message.

"Peso also stronger after the latest decline in global oil prices to among three-month lows, thereby could reduce the country's oil import bill and also reduce the demand for US dollars to pay for imported oil," he added.

Ricafort also noted that market sentiment improved amid optimism for a bipartisan deal on the US stimulus bill, and reports the US President Donald Trump could be discharged soon.

Last week, US President Donald Trump said that he, along with his wife First Lady Melania, tested positive for the coronavirus disease 2019 (COVID-19).

Trump, 74, was reported by Reuters to have been flown to a hospital for treatment on Friday, but his doctors say he has responded well and could return to the White House on Monday, US time. — RSJ, GMA News