Peso rebounds from 3-month low 

After hitting a nearly three-month low in the previous day, the peso rebounded against the United States (US) dollar, influenced by a tentative ceasefire between Iran and Israel, which pushed global crude oil prices to near two-week lows, according to a report by Manila Bulletin.

Data from the Bankers Association of the Philippines (BAP) showed that the peso recovered 42 centavos against the US dollar on Tuesday, June 24, to close at %u20B157.16 from %u20B157.58 Monday.

The local currency reached an intraday high of %u20B156.835 and a low of %u20B157.21 after opening at %u20B157.20.

Total trading volume rebounded to $2.01 billion from Monday’s $1.28 billion.

Japanese financial giant MUFG Bank Ltd. said that amid a de-escalation in the Israel-Iran war, the Philippine peso and Indian rupee “could catch up with oil prices,” which fell overnight.

Similarly, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the US dollar-peso exchange rate reversed the previous day’s 41-centavo increase “after US President Donald Trump announced a tentative ceasefire between Iran and Israel.”

Global crude oil prices also fell to near two-week lows, erasing gains since the June 13 attacks, with Nymex crude oil at $66 levels, down from the previous day’s high of $78.40.

According to Ricafort, these developments could potentially reduce local fuel prices, easing imported costs and inflation pressures amid dovish signals from some US Federal Reserve officials.