Peso falls back to ₱61:$1 level

The Philippine peso slid back to the 61-to-one dollar level on Tuesday after trailing within the ₱60:$1 range for about a week, following a hike in global fuel prices that provided a boost to the greenback’s allure against Asian currencies.

The local currency shed 55.5 centavos to close at ₱61.26:$1, from ₱60.705:$1 on Monday.

In a commentary, Rizal Commercial Banking Corp. chief economist Michael Ricafort said the US dollar appreciated after Brent crude oil prices “corrected higher” at $89 levels versus $84 in the previous trading day “as disputes over the Strait of Hormuz remained unresolved; [a] deal to re-open the Strait of Hormuz remains elusive.”

The dollar was also supported by US President Donald Trump’s “sweeping new demands on Iran, including compensation for casualties from Iranian-backed conflicts and decades of protest crackdowns, after Iran reiterated requests for reparations in talks to wind down the conflict.”

Nevertheless, the economist said the US dollar-Philippine peso exchange rate “remained relatively” amid possible interventions on market volatility at the ₱61.60-₱61.80 levels. — BM, GMA News