As the Iran-Israel conflict continues, the peso moves to P57 levels closer to P57 levels
The peso fell the dollar at its seventh straight meeting on Wednesday as market sentiment remained melancholy amid the conflict between Iran and Israel, with no signs of relaxation.
The Philippine Bankers Association showed that local units closed the Green Guard on Wednesday at P56.98, with the Philippine Bankers Association showing that its P56.70 score fell by 28 Centavos.
This is the weakest effect of local troops in two months, or since it was closed on April 14, when it was closed on P57.08.
After completing P55.745 on May 30, the peso has now lost P1.235.
So far, the Peso is still up 1.51% from its closing P57.845 at the end of 2024.
The peso opened at a meeting on Wednesday at a price of p56.75. Its best intraday was P56.70, and its worst performance was that its closing P56.98 runs contrary to the green.
The dollar rose to $1.27 billion on Wednesday from $1.223 billion on Tuesday.
According to Bloomberg, the Philippines will tolerate the slide to a two-month low in currency, with central bank governors claiming that the intervention will not be effective in the face of global risk aversion.
“When it’s a strong dollar story, it’s futile.
Asian currencies violated the dollar this week due to conflicts between Iran and Israel’s hurt emotions. As hostilities have led to higher oil prices, import currencies such as the Philippines and India have been particularly affected.
“The US dollar peso is getting higher and higher due to escalating tensions in the Middle East,” a trader said in a telephone interview.
PESO has expanded its losses amid the security demand for the dollar and the recent rise in oil prices, Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp., said in a Viber message.
ING Bank said in a research note on Wednesday that higher oil prices could have a “greater impact” on the Philippines and could put more pressure on the peso.
“The country has the largest current account deficit in the region, driven by rising imports and soft remittance growth, making it highly vulnerable to oil price shocks. A 10% rise in oil prices could widen its deficit by roughly 0.25% of GDP (gross domestic product), which stood at an elevated 3.7% of GDP in the first quarter of 2025, pressuring the PHP in the near term,” it said.
On Thursday, traders expect the peso to move between P56.70 and P57.10 per dollar, while Mr Ricafort believes it ranges from P56.90 to P57.10. – AMC SY and Bloomberg
