The peso weakened against the US dollar on Monday after the US prohibited its businesses from engaging with Russia’s oil workers.

The local currency closed at P58.7 per dollar on Monday, depreciating from P58.36/dollar during the trading last Friday, according to the Bankers Association of the Philippines.

The peso hit a high of P58.70 and a low of P58.50.

The latest level was also weaker than the P58.576 per dollar recorded last Thursday.

Rizal Commercial Banking Corp. chief economist Michael Ricafort said the US dollar strengthened as investors sought a safe haven after the US sanctions against Russia pushed up global oil prices on Monday.

“The US imposed sanctions on Russia’s oil industry as the Biden administration looks for last-minute ways to boost Ukraine’s leverage in possible peace negotiations after US President-elect Trump takes office on January 20,” he said.

Crude prices up

Bloomberg’s energy data showed US-sourced WTI Crude Oil increased by 1.42 percent to $77.66 per barrel yesterday.

Meanwhile, Europe-sourced Brent Crude increased by 1.24 percent to $80.75 per barrel.

The US Department of Treasury said the US government aims to reduce Russia’s revenues, claiming the country engages in illegal oil shipping activities through the so-called “shadow fleet.”

“The sanctions target two firms that handle more than a quarter of Russia’s seaborne oil exports,” Ricafort shared.

He projects the peso-US dollar exchange to range from 58.60 to 58.80 in the near term as re-elected US President Donald Trump announces clearer trade and other economic policies.

“Possible protectionist measures can be a source of new market leads,” Ricafort said.

The economist said investors also sought more US dollars as the US economy is seen to grow this year, following better employment data.

The US Bureau of Labor Statistics reported 256,000 additional jobs in December, which Ricafort said was “better-than-expected.”