Peso slips on lack of leads

THE PESO slipped against the dollar on Wednesday amid a lack of catalysts and as oil prices moved up on supply concerns.

The local unit went down by half a centavo to close at P58.725 against the greenback from its P58.72 finish on Tuesday, Bankers Association of the Philippines (BAP) data showed.

The peso opened Wednesday’s session stronger at P58.65 per dollar. Its intraday low was at P58.73 versus the greenback. Meanwhile, the BAP’s website showed that the local currency’s best showing for the session was at P56.65, although spot rates showed that the peso was at the P58 level the entire day.

Dollars traded fell to $1.34 billion from $1.46 billion.

“(The peso weakened) after the latest tensions between the US and Venezuela, as Trump ordered the blockade of all oil tankers in Venezuela; global crude oil prices [were] slightly higher but still among the lowest in nearly five years or since February 2021…,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

US President Donald J. Trump on Wednesday ordered a “total and complete” blockade on all sanctioned oil tankers entering and leaving Venezuela, while saying he now considers the country’s rulers a foreign terrorist organization. This pushed crude up more than 1%, Reuters reported.

Brent crude futures rose by 1.5% or 87 cents to $59.79 a barrel at 07:30 GMT, while US West Texas Intermediate gained 85 cents or 1.5% to $56.12.

“The peso moved sideways amid a lack of major market movers,” a trader said in a Viber message.   

For Thursday, the trader said the peso may continue to weaken in anticipation of US inflation data.

Mr. Ricafort and the trader see the peso moving between P58.60 and P58.85 versus the greenback on Thursday. — A.R.A. Inosante with Reuters