The Philippine peso held steady against the U.S. dollar at its all‑time low, as traders continued to monitor Middle East tensions that could influence global oil prices and inflation expectations.
It closed at 61.75 pesos per dollar, unchanged from Wednesday, according to data from the Bankers Association of the Philippines. The opening rate was 61.74, with an intraday high of 61.72 and a low of 61.75.
Dollar trading volume increased to 1.532 billion, up from 1.269 billion the previous day.
A trader noted that the peso traded within a narrow range while market participants awaited stronger catalysts. The market remains on a wait‑and‑see stance regarding developments in the Middle East.
Despite rising crude prices and expectations of a U.S. Federal Reserve rate hike, the peso stayed flat. Analysts suggest that central bank intervention may have helped smooth volatility.
The peso could be pressured by an upcoming import season that boosts dollar demand. If global oil prices climb to $120 per barrel, the currency may break the 61.75 support level, prompting further central bank action.
For Friday, expectations are for a narrow range between 61.72 and 61.75 per dollar, while analysts project trading between 61.60 and 61.80.
Oil prices reached a one‑month high on Thursday, rising for a fifth consecutive day amid escalating U.S.–Iran tensions that raised fears of supply disruptions along key transit routes.
Brent crude futures climbed 4% to $97.87 per barrel, while U.S. West Texas Intermediate rose 3.2% to $89.63 after hitting a recent peak.
An Iranian report claimed an oil tanker caught fire after an explosion while navigating a mined route in the Strait of Hormuz, and that two other tankers had withdrawn. The guard stated the strait was under its control and that no tanker would be allowed to enter or leave without coordination.
The dollar edged lower against the euro ahead of the European Central Bank’s policy meeting and reached a 40‑year high against the yen as investors focused on Middle East conflict.
Support for the dollar grew as markets curbed expectations for U.S. rate cuts, with the economy’s resilience to energy shocks strengthening demand for the currency at the expense of the euro and yen.
The dollar index fell 0.08% to 101.06, while the euro was up 0.09% at 1.1423.
