Sun. Sep 20th, 2020

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Peso climbs as oil prices decline

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THE PESO strengthened on Thursday as oil prices declined further and as the Philippine government allowed more public transportation modes to operate

The peso closed at P48.57 versus the dollar on Thursday, higher by nine centavos from P48.66-per-dollar finish on Wednesday.

The local unit opened Thursday’s session at P48.60 per dollar and reached a peak of P48.55. Its weakest showing was at P48.61 versus the greenback.

Dollars traded slipped to $548.96 million on Thursday from Wednesday’s $584.9 million.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the dollar weakened as oil prices continued to decline.

“The lower global oil prices recorded over two months could have reduced the demand for US dollars to pay for imports,” Mr. Ricafort said in a text message.

Brent crude futures fell a fraction to $40.77 a barrel after bouncing back from a three-month low overnight, Reuters reported. US crude futures slipped 0.2% to $37.99 a barrel.

Meanwhile, a trader said the peso climbed after the government allowed more public transportation modes to ply the roads.

The government has allowed at least 63,075 public utility vehicles, including jeepneys, buses and ride-hailing network services such as Grab, to operate, following the extension of relaxed quarantine measures for this month.

For today, Mr. Ricafort expects the peso to move from P48.50 to P48.65 versus the dollar while the trader sees the local currency to range from P48.50 to P48.70. — K.K.T. Jose with Reuters



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