Peso Rebounds to 60-Per-Dollar Level as Mideast Tensions Ease

MANILA, Philippines — The peso strengthened back to the 60-per-dollar level yesterday, posting its strongest close in more than a month as easing geopolitical tensions in the Middle East dampened demand for the greenback. Data from the Bankers Association of the Philippines showed the peso closed at 60.93 per dollar, strengthening by 31 centavos from its 61.24 finish last Friday. Yesterday’s finish was the peso’s strongest close in more than a month, or since June 19, when it settled at 60.775 per dollar. It also marked a sharp turnaround from the record low of 61.847 on July 24. The local currency opened at 61 against the dollar. It traded between 60.87 and 61.08 during the session. Trading volume slipped by 6.9 percent to $1.45 billion from $1.55 billion in the previous session. The peso has been recovering in recent sessions as external pressures eased, allowing emerging market currencies to regain some ground against the dollar. A trader said the peso gained ground after US President Donald Trump signaled that Washington would resume talks with Iran following requests from Gulf countries to pursue diplomatic efforts to end the conflict. Despite yesterday’s rebound, the trader said the local currency could come under renewed pressure later this week if July inflation in the Philippines surprises on the upside, as higher inflation may reinforce concerns over the country’s economic outlook. RCBC chief economist Michael Ricafort said the peso also benefited from a broader decline in the dollar after coordinated intervention by Japanese and US authorities supported the yen, pulling the greenback lower against other major Asian currencies. Ricafort also said that Brent crude prices have retreated to around $83 per barrel, their lowest level in more than two weeks, easing concerns over inflation and the country’s oil import bill. Ricafort noted that improving domestic indicators, including stronger manufacturing activity and gains in the local stock market, helped support the peso.