Peso gains vs US dollar amid easing of US-Iran war

The Philippine peso gained traction against the US dollar on Wednesday – albeit still within the P61-to-one dollar range – amid an apparent easing of US-Iran tensions in the Middle East.

The local currency gained 24.5 centavos to close at P61.305:$1 from P61.55:$1 on Tuesday.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso’s strength came after “[US President] Donald Trump signaled great progress toward a complete and final agreement with representatives of Iran to end the war with Iran.”

Ricafort also cited Iranian Foreign Minister Abbas Araghchi’s remark that the talks with the Americans were making progress.

“Other positive factor for the peso exchange rate – upcoming seasonal increase in OFW remittances and conversion to pesos to finance some tuition payments especially from May to June 2026 for the new local school year amid new record highs for the US dollar/peso exchange rate recently,” he added.

Ricafort’s remarks were echoed by Philippine Institute for Development Studies (PIDS) senior research fellow John Paolo Rivera, who said the peso’s recent depreciation is due to external factors.

“Hindi ito purong domestic crisis, hindi ito limitado lamang sa Pilipinas dahil karamihan na sa mga emerging market lalo na ang ating mga karatig bansa ay nakakaranas din ng ganitong klaseng pressure,” he said in an interview on GMA’s “Balitanghali.”

(This is not purely a domestic crisis, it is not limited to the Philippines alone because most of the emerging markets, especially nearby countries, are also experiencing the same pressure.)

“Hangga’t patuloy itong kaguluhan sa ating international economy, ang preference would be sa US dollar dahil ito ay tinatawag na safe haven kumpara sa piso,” he added.

(As long as the turmoil in the international economy continues, the preference would be for the US dollar, as it is considered a safe haven compared to the peso.

The peso hit a record intraday low of P61.75:$1 last Thursday, April 30, and closed at a record low of P61.567:$1 last Wednesday, April 29. — JMA, GMA News