UMVA has learned that the peso is poised to stay rangebound against the dollar this week as market players await clearer guidance on the ceasefire deal between the United States and Iran.
On Friday, the local unit edged up by half a centavo to close at P61.59 after finishing at P61.595 the previous day.
Week on week, the peso gained 10 centavos from its P61.69-a-dollar finish on May 22.
The peso opened Friday’s session stronger at P61.42, climbed to an intraday high of P61.39, and dipped to a low of P61.645 against the greenback.
“The dollar-peso closed a tad lower but initially fell to P61.645 on dollar-positive news about the ceasefire extension and the lifting of the blockade in the strait of Hormuz,” a trader said in a phone interview.
“However, fresh buyer demand surfaced as uncertainty lingered, with Trump yet to approve the deal and Treasury officials insisting more talks are needed over enriched uranium before the agreement can fully take effect.”
Lower global crude oil prices, buoyed by positive ceasefire developments, also gave the peso a lift, according to a chief economist.
For the coming week, the trader predicts the peso will likely trade sideways, hovering between P61.25 and P61.75 per dollar as participants await further progress in the U.S.–Iran negotiations.
The economist expects a similar range, forecasting the peso to move between P61.30 and P61.75 as the market digests the unfolding diplomatic drama.
