The Philippine peso rebounded sharply against the dollar on Monday as global oil prices eased over the weekend amid a respite in tensions between the United States and Iran.
The currency surged by 17.2 centavos to close at P61.675 versus the greenback from its record-low P61.847 finish on Friday, based on data from the local market.
The local unit opened Monday's session stronger at P61.76 per dollar, which was already its weakest showing. Meanwhile, its intraday best was at P61.67 against the greenback.
Dollars exchanged went up to $990.68 million from $969.38 million previously, a significant increase.
The US pause in strikes against Iran helped ease inflation concerns and boosted market sentiment, according to local economists.
Renewed hopes for a lasting peace deal between the US and Iran may also extend the peso's climb on Tuesday, according to traders.
The peso is expected to trade between P61.50 and P61.85, with some predicting it may even reach P61.75.
Global markets also reflected the easing of tensions, with the dollar dropping against other major currencies on Monday.
The US dollar was down 0.2% against the yen, the euro was up 0.3%, and the pound rose 0.1%, indicating a shift in investor confidence.
Oil prices also sank, with Brent crude tumbling 6.5% to $90.45 per barrel after the US military temporarily halted its strikes.
The dollar index, which measures the US currency's strength against a basket of six others, was flat at 101.27 ahead of the US Federal Reserve's policy meeting.
