Peso recovers against US dollar ahead of long weekend

The Philippine peso recovered against the US dollar on Wednesday as prospects of a long weekend stoked the demand for the local currency.

The peso gained 5.5 centavos to close Wednesday at P53.535:$1 from 53.590 on Tuesday.

“The peso was stronger today, to close at P53.50:$1, best in nearly two months before the long weekend that may require some conversion of remittances to pesos for holiday-related spending,” Michael Ricafort, economist at the Rizal Commercial Banking Corp., said.

Wednesday’s was the strongest for the peso in nearly two months since it closed at P53.46:$1 on Sept. 3, 2018.

Financial markets are closed on Thursday and Friday, November 1 and 2, which Malacañang declared as special non-working days.

“Peso also gained after global crude oil prices declined to two-month lows, which could help ease inflationary pressures and reduce both the country’s import bill and trade deficit,” said Ricafort. —VDS, GMA News