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 PHP 56.87 versus the dollar on Thursday, weakening by 17 centavos from Wednesday’s PHP 56.70 finish, data from the Bankers Association of the Philippines’ website showed.

The local unit opened Thursday’s session weaker at PHP 56.87 per dollar. Its intraday best was at PHP 56.83, while its worst showing was at PHP 56.90 against the greenback.

Dollars traded rose to USD 990.3 million on Thursday from the USD 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 PHP 56.80 and PHP 57 per dollar on Thursday, while Mr. Ricafort expects it to range from PHP 56.75 to PHP 56.95. — AMCS