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 versus the foreign currency.

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

Forex sales rise

“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, as a semi non-working day as government workers and students of all levels will be allowed to go home starting 12 noon.

Ricafort added households back home might be converting more dollars in taking 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.

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