Peso rebounds as inflation falls in line with BSP outlook

The Philippine peso rebounded against the greenback on Tuesday as the market considered inflation, which fell within expectations of the central bank, in a positive light.

The local currency strengthened by 5 centavos to close Tuesday at P51.46:$1 from P51.51 Monday.

“The peso initially strengthened at the start of the day after Philippine inflation hit the upper bound of the BSP’s target range,” Guian Angelo Dumalagan, market economist and acting head of treasury at the Land Bank of the Philippines, said.

Inflation clocked in at 4.0 percent in January, the fastest in over three years, but still within the Bangko Sentral ng Pilipinas’ (BSP) 2.0 to 4.0 target range.

Dumalagan noted the market will now closely monitor the policy meeting of the BSP on Thursday, February 9. —VDS, GMA News