Home Banking & Finance Peso climbs ahead of Russia-Ukraine talks

Peso climbs ahead of Russia-Ukraine talks

THE PESO rose against the dollar on Tuesday ahead of ceasefire talks between Russia and Ukraine. — BW FILE PHOTO

THE PESO strengthened versus the greenback on Tuesday amid upbeat sentiment ahead of a personal negotiation between Russian and Ukrainian officials in Turkey and as oil prices fell.

The local unit closed at P52.075 per dollar on Tuesday, stronger by 5.5 centavos from its P52.13 finish on Monday, based on Bankers Association of the Philippines data.

The peso opened Tuesday’s session at P52.07 versus the dollar. Its weakest showing was at P52.13, while its intraday best was at P51.99 against the greenback

Dollars traded increased to $1.047 billion on Tuesday from $778.55 million on Monday.

The peso was stronger on the back of positive sentiment ahead of a planned ceasefire talk between Russia and Ukraine, a trader said in an e-mail.

Kremlin spokesperson Dmitry Peskov said discussions between Kiev and Moscow could start this Tuesday in Turkey after negotiators arrived on Monday, Reuters reported. Mr. Peskov has said they have yet to reach major progress so far from the previous talks.

The in-person discussion was agreed upon by Russian President Vladimir Putin and his Turkish counterpart Recep Tayyup Erdogan on Sunday.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort in a Viber message said the peso strengthened following the decline in global oil prices.

Oil prices dropped by about 7% on Monday due to fears of the possible decline in demand as Shanghai, a major Chinese financial hub, locked down to curb the rise in infections.

Brent crude futures declined by $8.17 or 6.8% to settle at $112.48 a barrel. Meanwhile, the US West Texas Intermediate crude futures fell $7.94 or about 7%, to end at $105.96 a barrel.

For Wednesday, both Mr. Ricafort and the trader gave a forecast range of P51.95 to P52.15. — L.W.T. Noble with Reuters