THE peso closed at a new all-time low of P61.847 against the dollar on Friday, weighed down by rising global oil prices, escalating geopolitical tensions in the Middle East and a stronger greenback.
The peso, which had closed at its previous record low of P61.75:$1 during the past two days, closed out the trading week weaker by 9.7 centavos.
It opened Friday at P61.80 and traded within a range of P61.78 to P61.85 during the session.
"The peso's record-low close was driven primarily by external factors, particularly higher oil prices, heightened geopolitical tensions, and continued strength of the US dollar," said Carlo Asuncion, chief economist at Union Bank of the Philippines.
"While domestic inflation concerns may have added some pressure, the move largely reflects a challenging global environment rather than a significant deterioration in Philippine economic fundamentals," he added.
Asuncion said markets would be watching whether the peso's depreciation becomes prolonged, as sustained weakness could fuel inflation through higher fuel and import costs.
Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., said the peso fell as the dollar gained strength amid rising crude oil prices, escalating attacks between the United States and Iran, and fresh tariff concerns that renewed inflation worries.
He expects the peso to trade within the P61.70 to P62.00 range in the near term.
The currency’s drop was said to have factored in the Philippine Stock Exchange index’s (PSEi) Friday performance: down 0.03 percent, or 2.11 points, to 6,281.01.
Japhet Tantiangco, research manager at Philstocks Financial Inc., said investor sentiment was dampened by the surge in global oil prices, with Brent crude reaching the $100-per-barrel mark, and the continued depreciation of the peso.
"If directions are sustained, both are expected to pose upside risks to inflation," he said, adding that late bargain hunting helped trim the market's losses.
Trading remained subdued with net value turnover at P5.37 billion. Foreign investors were net sellers with outflows of P48.19 million.Services was the top-performing sector, gaining 1.03 percent, while banks posted the steepest decline, falling 1.38 percent.
Among index heavyweights, Century Pacific Food Inc. advanced 3.33 percent to P31.00 while Semirara Mining and Power Corp. dropped 3.97 percent to P21.75, making it the day's biggest loser on the benchmark index.
