Peso claws back P62-to-$1 level on lower oil prices

The Philippine peso clawed its way back to 62-to-one dollar level on Tuesday amid optimism following the retreat of global fuel prices, after sinking to P63:$1 on slower third quarter economic growth.

The local currency gained 40 centavos to close at P62.91:$1, from P63.31:$1 on Monday.

“The peso’s rebound to around P62.91/US$ reflects improved global risk sentiment, helped by lower oil prices and a softer US dollar,” said Union Bank chief economist Ruben Carlo Asuncion.

“The sharp retreat in crude is particularly positive for the Philippines as it eases pressure on inflation and the import bill,” Asuncion added.

Brent crude saw a decline of 1.7% to $90.99 a barrel, while US West Texas Intermediate futures fell 1.8% to $85.20 a barrel as US President Donald Trump downplayed prospect of escalation with Iran, according to a report by Reuters.

Locally, fuel prices are going down big-time with gasoline and diesel slashed by P16.80 per liter and P4.10 per liter, respectively, effective November 10.

“Still, we see this more as a near-term correction than a definitive reversal, with global developments and domestic fundamentals continuing to drive the peso,” Asuncion said.

The peso opened at P63.1:$1 and reached an intraday high of P62.895:$1 and a low of P63.13:$1, before closing at P62.91:$1. — BM, GMA News

Follow facebook.com/gmanewsonline for real-time news and developments in the Philippines and around the world.