Peso inches up as oil prices ease

The peso edged higher against the dollar on Thursday as oil prices continued to go down on easing supply concerns.

The currency gained 0.9 centavo to end at PHP 62.73 versus the greenback from its PHP 62.739 finish on Wednesday, according to Bankers Association of the Philippines data.

The local unit opened Thursday’s session weaker at PHP 62.83 per dollar. Its worst showing was at PHP 62.85, while its intraday best was at PHP 62.72 against the greenback.

Dollars traded went down to USD 1.268 billion from USD 1.349 billion.

“The dollar-peso closed a little lower as positive market mood overshadowed the hawkish Federal Reserve rate hike following headlines of an alternate route for the transport of oil in Oman,” a trader said by phone.

The peso was supported by declining global crude oil prices as this helped ease inflation concerns, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices eased on Thursday, extending losses on reports of Saudi Arabia offering extra crude cargoes through Oman, Reuters reported.

Meanwhile, the Fed raised rates and signaled further hikes, with Chair Kevin Warsh reaffirming the central bank’s independence despite repeated calls from US President Donald J. Trump for lower borrowing costs.

Markets remain far more hawkish than the Fed. While policymakers project one more rate hike in 2026 and a hold in 2027, investors are pricing in more than one additional increase this year and roughly three more by the end of 2027.

For Friday, the trader sees the peso ranging from PHP 62.50 to PHP 62.90 against the dollar on cautious trading as market players continue to digest the Fed’s latest policy signals and track developments in the Middle East, while Mr. Ricafort expects it to move between PHP 62.65 and PHP 62.85. — A.M.C. Sy with Reuters