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THE PESO rebounded against the greenback on Tuesday on the back of the decline in new cases of the coronavirus disease 2019 (COVID-19).

The local unit closed at P47.805 per dollar, gaining five centavos from its P47.855 finish on Monday, based on data from the Bankers Association of the Philippines.

The peso opened the session at P47.88 versus the dollar. Its weakest showing was at P47.90, while its intraday best was at its close of P47.805 against the greenback.

Dollars exchanged surged to $925.2 million from $567.19 million on Monday.

The peso was backed by improving investor sentiment as new coronavirus disease 2019 (COVID-19) cases continue to subside, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said.

Cases rose by 4,487 on Tuesday, with the country’s total cases at 1.154 million, based on data from the Department of Health.

Meanwhile, a trader attributed the peso’s strength to dovish signals from the US central bank.

“The peso appreciated after US Federal Reserve officials dismissed any premature tapering of the Fed’s asset purchases,” he said in an email.

Atlanta Fed President Raphael Bostic told CNBC it not yet time to change the central bank’s “strong accommodative stance.” He added the “healthy level of inflation” is an indication of economic growth.

For today, Mr. Ricafort gave a forecast range of P47.76 to P47.81 per dollar, while the trader expects the local unit to move within the P47.75 to P47.95 levels. — LWTN with Reuters