Oil price drop weakens peso

The Philippine peso retreated on Wednesday, weakened by a decline in global oil prices.

The local currency shed 8 centavos to close at P49.760:$1 from 49.680 on Tuesday.

"The peso fell against the US dollar following the drop in oil prices," Bank of the Philippine Islands lead economist Emilio Neri Jr. told GMA News Online.

According to a report by Reuters, oil prices dropped following data that showed an unexpected rise in US inventory. US crude futures traded at $48.28 per barrel, down 0.8 percent from late US levels.

Neri noted investors were also sidelined ahead of the upcoming first quarter gross domestic product data on Thursday.

"The peso may trade flat if the GDP numbers are within expectations of 6.5 to 6.9 percent, but may fall further if it's below expectations," he said. — VDS, GMA News