Peso nears record low at P61.745 vs US dollar

The Philippine peso extended its losing streak against the US dollar on Tuesday, closing near its record low against the greenback.

The local currency weakened by 5.9 centavos to close at P61.745 to the dollar, from P61.686 on Monday.

The peso's record low stands at P61.75 to the dollar.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the US dollar strengthened against major global currencies as crude oil prices remained elevated for a second straight trading day, hovering near one-month highs, amid a proposed 10-day ceasefire between the United States and Iran.

Ricafort added that vessel traffic through the Strait of Hormuz had nearly come to a standstill on Monday, July 20, following Iranian attacks on ships over the weekend.

Despite these developments, Ricafort said several factors helped cushion the peso's losses, including the Bangko Sentral ng Pilipinas' warning to banks against using foreign exchange derivatives to profit from currency volatility and recent signals from Malacañang reaffirming that the BSP remains the primary institution responsible for stabilizing the peso and managing excessive volatility in the foreign exchange market. —VBL, GMA News