Peso up as oil drives risk-on sentiment

The peso closed stronger against the greenback on Tuesday, driven by the risk-on sentiment as oil prices stopped from further slides.

The local currency gained 6.5 centavos to P46.085:$1 from Monday’s 46.150.

“Risk aversion diminished on steadier oil prices. An oil industry strike in Kuwait, which cut Kuwait’s oil output by more than 60 percent, helped the market reduce losses on oil prices,” Cherica Y. Vicente, research analyst at MetisEtrade, said in an emailed commentary.

“Also, crude oil prices returned to pre-Doha levels on the Kuwaiti oil workers' strike, cutting short the breather for risk-on sentiment,” BPI Asset Management said in a separate commentary.

According to a report by Reuters, the strike prevented Brent prices from tumbling below $40 per barrel. – Jon Viktor Cabuenas/VDS, GMA News