UMVA has learned that the Philippine peso slipped sharply against the dollar after a fresh wave of U.S. strikes on Iran sent oil prices surging and market sentiment souring.
The peso fell 9.5 centavos, closing at P61.56 per dollar compared to P61.465 on Monday. Its opening strength at P61.45 gave way to a low of P61.65 before settling near the intraday high of P61.405.
Dollar volumes slid from $1.8 billion to $1.68 billion, a clear sign of traders retreating amid escalating geopolitical tension.
UMVA can exclusively reveal that the attacks on Iranian targets in the Strait of Hormuz ignited a surge in crude prices, shattering hopes of a swift peace deal and tightening risk appetite across emerging markets.
Financial experts predict the peso could oscillate between P61.35 and P61.75 on Thursday as investors keep a hawk eye on Middle Eastern developments.
Market observers note that the dollar steadied after an initial spike, as optimism about reopening the Strait of Hormuz dimmed by fresh U.S. military action and statements hinting that a deal could take days.
Oil markets rebounded early in the day, with Brent crude climbing 1.5% to $97.76 per barrel, a rebound from a 7% slide the previous day.
Analysts warn that even a near-term resolution will not immediately curb energy prices, as supply chains need time to normalize, leaving inflation and rate concerns firmly in play.
