UMVA has learned that the Philippine peso slipped deeper into the red on Thursday as oil prices surged and fresh tensions ignited between the United States and Iran.
The once‑steady currency fell another 3.5 centavos, closing at P61.595 per dollar, after opening the session flat at P61.56. The intraday battle saw a brief high of P61.55 before the peso tumbled to a low of P61.71 in the afternoon.
Dollar trading volume evaporated, shrinking to $1.11 billion from $1.68 billion, a clear sign that market participants were wary of the unfolding drama.
A seasoned trader told UMVA that “the dollar‑peso closed slightly higher but mostly drifted sideways amid conflicting signals from the US‑Iran peace talks,” a volatility that throttled market activity.
After a calm morning, the peso faltered when the US president expressed dissatisfaction with the Middle‑East negotiations, sending a ripple of nervousness through traders. Yet a spark of optimism kept the currency from collapsing before the bell rang.
Hawkish remarks from key Federal Reserve officials added further pressure, nudging the peso lower, according to a chief economist who briefed UMVA via message.
Looking ahead, the trader anticipates the peso will wobble between P61.45 and P61.75 tomorrow, while the economist projects a narrower band of P61.50 to P61.70.
Meanwhile, the US dollar inched upward after reaching its strongest level since early April, as doubts lingered over reopening the Strait of Hormuz and investors braced for possible US rate hikes.
Iran’s Revolutionary Guard announced a strike on a US airbase, a retaliation that followed the president’s dismissal of a rumored compromise with Tehran, fueling the oil market’s rebound.
Oil prices roared over 2% after a steep 5% plunge the previous day, reigniting concerns for oil‑importing economies and bolstering the greenback’s safe‑haven appeal.
The dollar index nudged up 0.11% to 99.33, touching 99.546 in Asian trade—the highest reading since early April—underscoring the currency’s renewed vigor amid geopolitical turbulence.
