Peso weakens due to worries over Middle East war
THE PESO weakened anew against the dollar on Thursday due to lingering worries over the war in the Middle East.
The local currency closed at P56.87 versus the dollar on Thursday, weakening by 17 centavos from Wednesday’s P56.70 finish, data from the Bankers Association of the Philippines’ website showed.
The local unit opened Thursday’s session weaker at P56.87 per dollar. Its intraday best was at P56.83, while its worst showing was at P56.90 against the greenback.
Dollars traded rose to $990.3 million on Thursday from the $877.5 million on Wednesday.
The peso dropped against the dollar on Thursday amid increased worries over the Israel-Hamas conflict and higher US Treasury yields, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“The peso weakened amid downbeat investor sentiment from the lingering worries due to the Israel-Hamas conflict,” a trader likewise said in an e-mail.
The peso also tracked the weakness seen in the region but was in the “middle of the pack,” ING Bank N.V. Manila Senior Economist Nicholas Antonio T. Mapa noted in a Viber message.
The dollar generally strengthened on Thursday after US Treasury yields gained overnight, he added.
For Friday, the trader said the peso could weaken further due to potentially hawkish remarks from US Federal Reserve Chair Jerome H. Powell overnight.
The trader sees the peso moving between P56.80 and P57 per dollar on Thursday, while Mr. Ricafort expects it to range from P56.75 to P56.95. — AMCS
