Peso hits third straight record-low close as PSEi falls
The peso weakened 15.9 centavos, or 0.25 percent, to a fresh record-low close of P63.52 per US dollar on Thursday, extending its record-setting run to three consecutive sessions, while the Philippine Stock Exchange Index (PSEi) fell 41.78 points, or 0.72 percent, to 5,779.73 as renewed oil-price pressures and uncertainty over interest rates weighed on market sentiment.
The peso also reached a new intraday low of P63.545 per dollar, according to the Bankers Association of the Philippines’ spot-market data. This marks the weakest level for the peso during the session, rather than P63.475.
Reflecting pressures
The currency’s continued slide reflects several pressures, including rising global oil prices, persistent dollar demand to pay for imports, concerns over the country’s external payments position and expectations of further monetary tightening.
Recent market reports have highlighted the widening balance-of-payments deficit and the peso’s vulnerability to higher oil-import costs.
Global oil prices rose sharply on Thursday as renewed Houthi attacks on Saudi Arabia heightened fears of a wider Middle East conflict and possible disruptions to crude supplies. Brent crude climbed $2.82 to $111.64 a barrel, while US West Texas Intermediate gained $2.24 to $99.39.
For the Philippines, a net oil importer, higher crude prices increase the import bill and can intensify demand for US dollars, adding pressure on the peso.
The peso opened at P63.31 and traded between P63.30 and P63.545 before closing at P63.52. The BAP morning weighted average was P63.414, while the afternoon weighted average edged higher to P63.423. The full-day weighted average stood at P63.419, and the foreign exchange settlement rate was P63.414.
Spot-market volume rose to $1.7159 billion from $1.3413 billion on Wednesday, with $794.5 million traded in the morning and $921.4 million in the afternoon.
PSEi retreats
Meanwhile, the PSEi retreated as investors weighed the currency’s continued weakness and uncertainty over interest rates. Total value turnover reached P8.21 billion, with 64 advancing issues, 108 decliners and 62 unchanged stocks. The broader All Shares index fell 0.54 percent to 3,220.96.
Most sectoral indices declined. Services dropped 0.83 percent, industrials lost 0.78 percent, financials fell 0.66 percent, property slipped 0.51 percent and holding firms shed 0.44 percent. Mining and oil was the sole gainer, rising 0.16 percent.
Mynt Inc., operator of GCash, closed at P6.56, down P0.03, or 0.46 percent, for the session, two days after its blockbuster initial public offering.