Peso Surges as Iran Deal Hopes Hit Dollar

The Philippine peso (PHP) surged against the US dollar on Wednesday due to optimism over a potential resolution to the conflict between the United States and Iran.

The currency jumped by 41.4 centavos, closing at PHP60.751 per dollar from its previous finish of PHP61.165. This marked its best close in nearly seven weeks since June 18's PHP60.567.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso's rise to the easing of domestic inflation concerns due to the latest developments in the Middle East.

The dollar traded at six-week lows against other currencies, with investors showing less interest in buying the dollar as a safe-haven asset amid lower oil prices and optimism over a resolution to the war in Iran.