The peso strengthened against the US dollar on Wednesday as Filipino households received more remittances from relatives overseas as the long weekend neared.

The local currency closed at P58.23 per dollar on Wednesday from P58.275 per dollar on Tuesday, according to the Bankers Association of the Philippines.

The peso opened at P58.2 per dollar before reaching a high of P58.33 and a low of P58.18 against the foreign currency.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said that the peso strengthened as Filipinos sought more funds to spend on All Souls' Day activities.

"There has been some increase in conversion of overseas Filipino workers' remittances to pesos before the All Souls' Day and long weekend," he said.

President Ferdinand Marcos Jr. declared 31 October, Thursday, a semi non-working day, allowing government workers and students of all levels to go home starting at noon.

Ricafort added that households in the Philippines might be converting more dollars to take advantage of low oil prices amid tensions between Israel and Iran.

"Global crude oil prices declined further to near one-month lows after Israel completed airstrikes on facilities in Iran, while sparing Iran’s oil and nuclear facilities," he said.

The BBC reported that Iran re-launched missile attacks against Israel on 1 October for avenging the deaths of Iranian militant leaders.