Peso declines vs dollar as oil prices surge on Russia’s move
THE PESO weakened versus the greenback on Tuesday as oil prices surged on worries over Russia’s support for separatist movements in Ukraine.
The local unit ended trading at P51.45 per dollar on Tuesday, shedding seven centavos from its P51.38 close on Monday, based on data from the Bankers Association of the Philippines.
The peso opened the session at P51.40 per dollar on Tuesday, which was also its intraday best. Meanwhile, its worst showing was at P51.48 against the greenback.
Dollars exchanged increased to $782.4 million on Tuesday from $713.5 million on Monday.
The peso depreciated on Tuesday as oil prices surged, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Meanwhile, a trader said the peso weakened after Russian President Vladimir Putin supported separatist movements in Ukraine.
Reuters reported that oil prices increased quickly on Monday amid supply concerns due to rising tensions between Russia and the West over Ukraine.
Brent crude futures jumped $2.74 or 2.91% to $96.28 a barrel by 2 pm ET (1910 GMT) on Monday. Meanwhile, US West Texas Intermediate crude futures rose $2.79 or 3,06% to $93.86 a barrel at 1915 GMT.
The United States and its European allies are set to announce fresh sanctions against Russia on Tuesday after Mr. Putin recognized two breakaway regions in eastern Ukraine, deepening Western fears of a new war in Europe.
The Ukrainian military said two soldiers were killed and 12 wounded in shelling by pro-Russian separatists in the east in the past 24 hours, the most casualties this year, as ceasefire violations increased.
Mr. Putin’s announcement on Monday, and his signing of a decree on the deployment of Russian troops to the two breakaway regions, drew international condemnation and immediate US sanctions, with US President Joseph R. Biden signing an executive order to halt US business activity in the breakaway regions.
For Wednesday, both Mr. Ricafort and the trader gave a forecast range of P51.35 to P51.50 per dollar — LWTN with Reuters
