08.04.202604:33:40UTC+00Philippine Peso Rebounds

The Philippine peso strengthened to 59.5 per USD, rebounding from a record low hit on March 30, as risk sentiment improved following a two-week ceasefire agreement between the US and Iran in their monthlong conflict. President Trump agreed to halt attacks on Iran for two weeks on the condition that Tehran reopens the Strait of Hormuz. Iran, in turn, indicated that safe passage through the strait would be “possible” during this period. The conflict, which began in late February, has widened into a broader regional confrontation, rattling global markets and pushing oil prices higher. In an unscheduled meeting last month, the Bangko Sentral ng Pilipinas left its key interest rate unchanged at 4.25%, choosing not to tighten policy despite war-related inflationary pressures in order to safeguard the economy’s fragile recovery from a recent graft scandal. Meanwhile, the latest data showed that March inflation quickened to a 20-month high of 4.1%, breaching the BSP’s 2–4% target range and heightening the risk of a rate hike.