Peso slips to P62.535:$1

The Philippine peso retreated against the US dollar on Thursday as global oil prices continued to climb amid the ongoing conflict between the United States and Iran.

The local currency shed 2.2 centavos to close at P62.535:$1 from Wednesday’s finish of P62.513:$1. The peso hit a new record low of P62.625:$1 on Tuesday, September 8.

“The peso’s recent weakness reflects a combination of elevated oil prices, a wider trade deficit, broad US dollar strength, and persistent global risk aversion,” Manulife Investments Philippines head of fixed income Jean Olivia De Castro said in a commentary.

Brent crude prices have climbed above $100 per barrel, while US benchmark crude remained around $96 per barrel following attacks on oil facilities and ships in the Middle East.

“A volatile peso increases foreign exchange risk for offshore investors, which can offset the attractive yield advantage of Philippine bonds and reduce the willingness of foreign funds to hold peso-denominated assets,” De Castro said.

The local stock market, meanwhile, also closed lower, with the benchmark Philippine Stock Exchange index (PSEi) shedding 17.30 points, or 0.28%, to finish at 6,099.23.

The broader All Shares index lost 2.54 points, or 0.08%, to 3,383.31.

More than 1.027 billion shares worth P7.279 billion changed hands. Decliners led advancers, 93 to 83, while 67 issues were unchanged. — VBL, GMA News