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THE PESO rebounded sharply against the dollar on Wednesday, snapping a five-day slump that saw it close at new record lows in the past three sessions, after US President Donald J. Trump said they could end their military campaign in Iran soon.

The local unit jumped by 58.8 centavos to end at P60.16 against the greenback from its all-time-low P60.748 finish on Tuesday, data from the Bankers Association of the Philippines showed.

This marked the peso’s biggest one-day gain since March 10, when it strengthened by 60.4 centavos to close at P58.896.

The currency opened Wednesday’s trading session stronger at P60.50 per dollar, which was already its worst showing. Its intraday best was at P60.10 against the greenback.

Dollars traded ballooned to $2.732 billion from $1.587 billion on Tuesday.

“The dollar-peso ended lower on improving risk sentiment as Trump signaled openness to ending the war in Iran,” a trader said in a phone interview.

Mr. Trump’s remarks caused the US dollar and global crude oil prices to go down, boosting the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Inflows ahead of the long weekend also supported the currency, he added.

Philippine financial markets are closed on April 2 and 3 in observance of Holy Week.

The dollar fell for a second day on Wednesday as expectations of a ceasefire in the Middle East conflict grew after the US signaled that an end to the war could be near, even though markets remained on edge on fears of escalation, Reuters reported.

The White House said US President Donald Trump would address the nation “to provide an important update on Iran” at 9 p.m. EDT on Wednesday (0100 GMT on Thursday).

Mr. Trump said on Tuesday the US could end its military campaign against Iran within two to three weeks, while Secretary of State Marco Rubio told Fox News Washington could see the “finish line” in the Iran war.

The dollar index, which measures the currency against a basket of currencies including the yen and the euro, was last down 0.1% at 99.60, slipping to a one-week low after a 0.65% fall on Tuesday.

The US dollar has benefited from a safe-haven bid since the conflict began in late February, and the US, a net energy exporter, is also relatively better positioned to handle oil disruptions than other nations.

Brent crude futures fell below $100 per barrel on Wednesday, although they were last trading at about $100.40. — Aaron Michael C. Sy with Reuters

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