Peso closes at fresh record low of P62.86 to US dollar - GMA Network

The Philippine peso depreciated for the second straight trading day, closing at a fresh record low as global oil prices continued to rise amid ongoing geopolitical tensions in the Middle East.

The local currency shed 18 centavos to close Monday at P62.86:$1, near its intraday low of P62.875:$1. This compares with last Friday’s finish of P62.68:$1, the previous record low.

“PHP63 is clearly within striking distance. The peso remains under pressure from a strong dollar, elevated oil prices, and continued local demand for dollars. But touching 63 is different from staying there,” a trader said in a mobile message.

“At these levels, the BSP is likely to be increasingly watchful of any disorderly move, so the bigger question is whether 63 becomes a new trading range or simply another level the market tests,” the trader added.

Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. has maintained that the central bank does not target a specific level, but it moves when big swings occur.

Oil prices rose by more than 2% on Monday, with Brent crude futures up 2.77% at $107.51 per barrel as of 2313 GMT, while West Texas Intermediate (WTI) futures climbed 2.27% to $102.32 per barrel.

British navy-affiliated agency UKTMO reported over the weekend that a projectile hit a vessel while it was moving through the Strait of Hormuz, but the damage and the status of the crew were unknown, as reported by Reuters. — RSJ/BM, GMA News