Drop in oil prices weakens peso vs. dollar

The peso traded on a softer note against the dollar Friday as oil prices tumbled in the region, benefiting the greenback.

 

A dollar fetched P44.89, up 4 centavos from 44.85 Thursday, according to Philippine Dealing & Exchange Corp. data.

 

"The dollar was stronger in Asia due to the slide in oil prices," a trader at a local bank said in a phone interview.

 

The dollar strengthened on Friday after the OPEC cartel decided not to cut oil output, slamming commodity currencies, Reuters reported.

 

Unlike in peer countries in Asia, the peso's decline was not too drastic on dollar inflows, the trader noted. "I suspect there was some inflows, particularly in equities."

 

The local market rebounded from a slump in the previous session as bargain hunting and month-end window dressing kept most sellers at bay while waiting for better prices.

 

Philippine Stock Exchange data showed net foreign selling of P4.99 billion outpaced net foreign buying of P4.51 billion on Friday. – VS, GMA News