Peso extends winning streak following inflation data release

The Philippine peso continued its appreciation streak against the US dollar on Tuesday, following the release of local economic data.

The currency gained 2.5 centavos to close at P48.38:$1 versus Monday's finish of P48.405:$1.

Tuesday's finish was the second consecutive trading day that the Philippine peso strengthened against the greenback, reacting to the economic data released earlier during the session.

The Philippine Statistics Authority (PSA) on Tuesday reported September inflation at 2.3%, marking the second month of deceleration.

The PSA also reported that the manufacturing output contracted for the ninth consecutive month in August, albeit on a slower basis.

"The peso continues to outperform Asian peers, logging a 4.78% gain year-to-date, which has helped limit imported inflation for most of the year," Nicholas Antonio Mapa, senior economist at ING Bank Manila, said in an emailed commentary.

"With the economy in recession, consumer demand remains anemic as unemployment stays elevated at around 10% as of the first half of the year," he added.

Just last month, the PSA reported an unemployment rate of 10% in July, equivalent to 4.6 million jobless Filipinos. — RSJ, GMA News