Peso closes stronger ahead of U.S. inflation data

The peso exchange rate is stronger against the U.S. dollar for the second day in three trading days, by 0.09 or 0.2 percent, to close at 56.77 on Tuesday.

This is the most robust peso performance in more than a week since 1 September, when it closed at 56.42.

The peso opened at 56.80 before reaching a high of 56.95, a low of 56.73, then closed at 56.77. The intraday average was 56.857, with a $934.45 million volume.

"The peso is stronger today against the dollar amid the continued downward correction in the dollar against major global commodities; ahead of the latest U.S. inflation data [which is expected to ease from 8.5 percent in July 2022 slightly]," chief economist Michael Ricafort of Rizal Commercial Banking Corp. told Daily Tribune.

"The peso is also stronger after the recent increase in local interest rates/bond yields that could increase the attractiveness of the peso. The 10-year T-bond average auction yield was 6.703 percent; 0.89 against the previous 10-year Treasury bond auction on 16 August," he added.

Ricafort noted that the peso also strengthened as global crude oil prices still hovered among seven-month lows, leading to the latest rollback in local fuel pump prices that could ease oil imports and overall inflation.