Peso climbs as oil prices drop
THE PESO rose against the dollar on Thursday following the decline in global crude oil prices after the world’s biggest oil exporters pushed back their meeting.
The local unit closed at P55.39 per dollar on Thursday, strengthening by six centavos from its P55.45 finish on Wednesday, Bankers Association of the Philippines’ data showed.
The peso opened Thursday’s session steady at P55.45 against the dollar. Its intraday best was at P55.38, while its weakest showing was at P55.545 versus the greenback.
Dollars exchanged went down to $1.07 billion on Thursday from $1.21 billion on Wednesday.
The peso appreciated against the dollar on Thursday after the Organization of the Petroleum Exporting Countries and their allies including Russia (OPEC+) delayed its meeting, tempering expectations of a production cut, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
“The peso closed stronger today, tracking the decline in global crude prices following the postponement of the OPEC+ meeting,” a trader likewise said in an e-mail on Thursday.
US crude fell 1.14% to $76.22 per barrel and Brent was at $80.92, down by 1.27%, extending losses from the previous session after OPEC+ postponed a ministerial meeting, which stoked expectations that producers might cut output less than had been anticipated, Reuters reported.
The peso rose despite the continued strength of the dollar after the latest minutes of the US Federal Reserve’s meeting showed officials would be cautious in deciding whether it would raise borrowing costs again, Mr. Ricafort added.
The dollar index rose overnight, bouncing from a 2-1/2-month low, after data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, Reuters reported.
For Friday, the trader said the peso could weaken against the dollar ahead of potentially strong US purchasing managers’ index data.
The trader expects the peso to move between P55.30 and P55.55 against the dollar on Friday, while Mr. Ricafort sees it ranging from P55.30 to P55.50. — A.M.C. Sy with Reuters
