THE peso fell to another record low of P60.748 to the dollar on Thursday, its third drop in as many trading days, while a last-hour rally allowed the stock market to regain some ground after a two-day decline.
The currency, which was 5.8 centavos weaker at the close, opened at P60.65:$1 and traded between P60.58 and P60.75. Volume reached P1.587 billion, down from P2.007 billion at the start of the week.
The benchmark Philippine Stock Market index (PSEi), which fell to as low as 5,828.67 early in the morning and traded below 5,900 for most of the day, climbed just before the session ended and closed up 79.45 points, or 1.35 percent, at 5,948.94.
The broader All Shares added 38.07 points, or 1.15 percent, and closed Tuesday at 3,333.92.
A trader said the peso weakened due to higher oil prices and a stronger dollar.
“Higher crude widens the trade gap; risk-off lifts the dollar,” the trader added, with the peso likely to trade at P60 to P61 while shocks persist.
“If oil stabilizes, the peso retraces — this looks like an overshoot, not a new trend,” the trader added.
MUFG Research noted that the greenback continued to trade at stronger levels overnight, with the dollar index hitting its highest level since May last year.
“Renewed upward momentum for the US dollar reflects heightened concerns over the risk of a more prolonged and disruptive energy price shock for the global economy,” it said.
Philstocks Financial Inc. research manager Japhet Tantiangco, meanwhile, said the PSEi gained on news that the government planned to hold talks with Iran to ensure the safe passage of Philippine-bound vessels through the Strait of Hormuz.
Luis Limlingan, head of sales at Regina Capital Development Corp., noted that investors took advantage of lower valuations following recent market weakness, with cautious optimism fueled by reports that US President Donald Trump was willing to end the war against Iran without reopening Hormuz.
Rizal Commercial Banking Corp. (RCBC) chief economist Michael Ricafort added that the PSEi’s rebound was supported by a slight correction in global crude oil prices, improved Philippine fuel inventories and stabilizing global bond and gold markets.
The peso’s record low did not dampen selective buying, he added, as investors focused on bargain opportunities.
Trading was strong, with net value turnover at P8.77 billion, though foreign investors remained net sellers with outflows of P712.33 million.
Only services closed lower, down 0.43 percent, while mining and oil led the gains by rising 2.53 percent.
Advancers outnumbered decliners 124 to 79.