Economic Data News Analysis

Oil lubricates recovery

After losing 9.5 centavos in the first two weeks of May, the Philippine peso rebounded, hitting P46.4275 to the US dollar on 17 May.

The local currency’s recovery came as oil prices in Asia surged to their highest levels since October last year. The price rise, in part, is a result of a slowdown in drilling in the US and an increase in crude-oil refinery processing in China, spurring optimism that the global glut of oil would recede.

Oil-sector players in the Philippines lost no time in cashing-in on the news, announcing a 30-centavos hike for a litre of diesel.