THE peso and the stock market moved in different directions on Wednesday following the release of US inflation data, the former falling back to the P56:$1 level and the latter bucking a regional decline.

The currency weakened by 16 centavos to P56.1 against the greenback, a result attributed by Rizal Commercial Banking Corp. chief economist Michael Ricafort to higher-than-expected US inflation having boosted the dollar to a three-month high.

The peso opened trading at P56.18:$1 and ranged from P56.08 to P56.333. Volume reached P1.338 million, slightly higher than the P1.258 billion recorded in the previous session.

The benchmark Philippine Stock Exchange index (PSEi), meanwhile, climbed by 26.61 points, or 0.39 percent, to 6,854.53 while the broader All Shares also advanced, adding 11.35 points, or 0.32 percent, to 3,588.23.

Claire Alviar, research associate at Philstocks Financial Inc., said the market briefly declined during the morning session following "hotter-than-expected" US inflation, which further dashed hopes of an early Federal Reserve rate cut.

Asian markets fell on the news but the PSEi went the other way as traders chose to look forward to the results of a Bangko Sentral ng Pilipinas (BSP) policy meeting this Thursday, she added.

"Unlike the unexpected inflation rate spike in the US, the Philippine inflation rate is easing and [is] still within expectation, leading investors to look forward to the meeting of the BSP," Alviar said.

Market participation was weak, resulting in a net value turnover of P4.06 billion.

Most sector indices closed in green territory, with industrials posting the biggest gain of 0.6 percent. Mining and oil, on the other hand, dropped by 1.51 percent.

Advancers edged out decliners, 90 against 89, while 47 were unchanged.

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