Both the local currency and the stock market closed strongly following the central bank's report on personal remittances.
The peso's strength is attributed to the continued growth in remittances from overseas Filipino workers (OFWs), reaching record highs on a monthly basis.
The peso achieved its best performance in three months, closing at 55.86 to the US dollar, compared to the previous day's finish at 56.06. The currency started the day at 55.78 and maintained strength without touching the 56 level.
Rizal Commercial Banking Corp. chief economist Michael Ricafort attributed the peso's strength to the continued growth in remittances from overseas Filipino workers (OFWs), reaching record highs on a monthly basis.
The Bangko Sentral ng Pilipinas reported a 2.6% year-on-year growth in OFW remittances to $3.23 billion in September, with a 2.8% increase on a year-to-date basis to $27.74 billion from January to September.
Trade volume on Wednesday increased to $1.48 billion from $1.43 billion on Tuesday. Meanwhile, the Philippine Stock Exchange index (PSEi) rebounded from a two-day decline, closing positively.
The PSEi gained 60.25 points, reaching 6,171.13, and All Shares rose by 21.44 points to 3,307.72. Among the sectoral indices, only Industrial ended in the red, while Gainers were led by Holding Firms.
Eighty-four index members closed higher, 84 were losers, and 47 issues were left unchanged. The positive economic indicators reflect the impact of remittances on the local currency and stock market, contributing to the country's economic resilience.