The peso rebounded after two days of losses, tracking regional peers as latest US data signified weak manufacturing, prompting speculations that the Fed will delay any rate hike. It also received a boost from a rise in the local equities market, which posted its biggest gain in five months Tuesday.
The local currency closed P48.20 versus the dollar Tuesday, up 32 centavos from the previous day’s P48.52 finish.
Tuesday’s close was the strongest finish for the peso in two weeks since it settled at P48.18 on October 3.
“Dollar weaker against regional currencies,” Jonathan Ravelas, chief market strategist at Banco de Oro (BDO) Unibank, said in a reply to a text message.
Ravelas said the dollar weakness could be attributed to the weak New York manufacturing for October, which printed at -6.8, much lower than estimate of 1.0 and prior month’s -2.0.
The peso could end 2016 at P47.70 against the dollar, he said.