The Philippine peso strengthened sharply against the US dollar on Wednesday, returning to the P60 level for the first time in recent weeks.
The local currency gained 41.4 centavos to close at P60.751 per dollar, marking a decisive reversal of the depreciation seen earlier in the week.
The rebound was driven by slower-than-expected inflation data for July, which provided immediate support for the local unit.
Lower price pressures reduce the urgency for aggressive monetary tightening, allowing the peso to stabilize as market participants reassess the near-term interest rate outlook.
This move follows a period of volatility for the peso, which had previously closed at P61.62 on Thursday after a sharp depreciation.
The recent strengthening represents the currency's best performance against the greenback in a month, aided by improving risk sentiment across emerging markets.