The Philippine peso slipped 5.8 centavos to a new all-time low of 60.748 against the US dollar Tuesday as oil price volatility and sustained dollar demand weighed on the currency.
Data from the Bankers Association of the Philippines showed the local currency opened at 60.65 against the greenback and touched an intraday low of 60.75 before reaching its new record finish.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., attributed the depreciation to risks surrounding the Middle East conflict.
“The peso slipped to 60.748, weighted by volatile oil prices and sustained dollar demand as Middle East risks linger,” Ravelas said. “Expect range-bound trading at 60.600 to 60.900 levels as uncertainty around energy persists.”
A trader said the slump reflected higher crude prices widening the trade gap while “risk-off” sentiment lifted the greenback. “Near term, expect 60 to 61 while shocks persist,” the trader said. “If oil stabilizes, the peso retraces—this looks like an overshoot, not a new trend.”
Meanwhile, Philippine shares ended the first quarter in the green on seasonal window dressing and bargain hunting. The 30-company Philippine Stock Exchange index (PSEi) ended a three-day losing streak Tuesday, increasing by 79.45 points, or 1.35 percent, to close the month at 5,948.94. The broader all shares index jumped 38.07 points, or 1.15 percent, to 3,333.92.
Analysts said investors took advantage of lower valuations following the market’s recent slump.
“Cautious optimism was also fueled by reports that U.S. President Donald Trump signaled willingness to end the Iran conflict without requiring the reopening of the Strait of Hormuz,” said Luis Limlingan, head of sales at Regina Capital Development Corp.
The upward momentum was broad-based as most sectoral indices ended in positive territory. Mining and oil jumped 2.53 percent, followed by holding firms and property, which advanced 2.49 percent and 2.29 percent, respectively.
Trading was active as value turnover reached P8.76 billion. Gainers led decliners 124 to 79, while 62 stocks remained unchanged. Foreign investors remained net sellers with outflows of P712.33 million.
Shares of Ayala Land Inc. declined 0.74 percent to P16.14 even after its board approved a P10-billion share buyback program. On the other hand, shares of GT Capital Holdings Inc. jumped 2.77 percent to P520 pafter the company acquired a 20 percent interest in Federal Land NRE Global Inc. for P9.16 billion.
