Connect with us

Hi, what are you looking for?

News

Peso ends at P57:$1 on oil output cut

BW FILE PHOTO

THE PESO slipped to a new record low versus the dollar on Tuesday on renewed global inflation concerns after petroleum exporting countries said they would cut oil production.

The local unit closed at a fresh all-time low of P57 per dollar on Tuesday, inching down by less than a centavo from its P56.999 finish on Monday, Bankers Association of the Philippines data showed. Year to date, the peso has weakened by 11.76% or P6 from its P51-per-dollar close on Dec. 31, 2021.

The local unit opened Tuesday’s trading session at P56.888 against the dollar. The peso’s weakest showing was its close of P57, while the intraday best was at P56.86 against the greenback.

Dollars exchanged declined to $812.19 million on Tuesday from $976.45 million on Monday.

“The peso settled at the P57 level today amid renewed global inflation concerns after the OPEC+ (Organization of Petroleum Exporting Countries and allies led by Russia) decided to reduce its daily production target by 100,000 barrels this month,” a trader said in an e-mail.

OPEC+ said the cut will help boost prices that have slid on expectations of a global economic slowdown.

Benchmark Brent crude oil has dropped to about $95 a barrel from $120 in June on fears of an economic slowdown and recession in the United States.

On Tuesday, Brent crude futures fell 0.7% to $95.07 a barrel. US crude futures, however, were still up 2.12% at $88.71 a barrel.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message that the peso moved sideways on Tuesday after the slower-than-expected inflation rate in August.

Headline inflation slowed to 6.3% in August from the near four-year high of 6.4% seen in July, the Philippine Statistics Authority (PSA) reported on Tuesday.

While the result was within the Bangko Sentral ng Pilipinas’ (BSP) 5.9-6.7% forecast for the month and below the 6.4% median estimate in a BusinessWorld poll of analysts, it was the fifth consecutive month inflation went beyond the central bank’s 2-4% target. It was also faster than the 4.4% headline print logged in August 2021.

Month on month, inflation picked up by 0.4%.

For the first eight months, inflation averaged 4.9%, faster than 4% in the same period a year prior but below the BSP’s 5.4% forecast for 2022.

The peso was also mostly steady following the latest rollback in local fuel pump prices, Mr. Ricafort added. Petroleum firms announced a P1.55 per liter price decrease for diesel and P2.60 per liter on gasoline following a big-time price hike last week.

For Wednesday, the trader said the peso may rebound ahead of a potentially weaker US non-manufacturing report.

The trader expects the peso to move between P56.90 and P57.10 against the dollar, while Mr. Ricafort gave a forecast range of P56.85 to P57.05. — K.B. Ta-asan

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest

News

PHILIPPINE STAR/ MICHAEL VARCAS WASHINGTON D.C. — The United States is seeking to form a coalition of countries to drive negotiations on a global...

News

Buildings are seen along EDSA in Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN By Diego Gabriel C. Robles  THE WORLD BANK (WB) upgraded...

News

Heavy traffic is seen on the southbound lane of EDSA in Cubao, Quezon City. — PHILIPPINE STAR/ MIGUEL DE GUZMAN THE PHILIPPINE auto industry’s...

News

REUTERS THE BANGKO SENTRAL ng Pilipinas (BSP) may deliver a second off-cycle rate hike in early November when the US Federal Reserve is expected...

News

Vendors arrange their goods at a public market in Manila. — PHILIPPINE STAR/ RUSSEL A. PALMA THE ASIAN Development Bank (ADB) is planning to...

Editor’s Pick

With the reversal of the 1.25% rise in National Insurance Contributions happening on the 6th of November, employers across the nation have an opportunity...

You May Also Like

News

BW FILE PHOTO GROSS BORROWINGS by the National Government reached P2.6 trillion as of end-September as it continued to raise funds to respond to...

News

KARASOLAR.COM TENA, Ecuador — Ecuador’s rainforest Achuar people say their ancestors long dreamed of a “fire canoe” or “electric fish” that would let them...

News

REUTERS By Luz Wendy T. Noble, Reporter The country’s foreign exchange buffers slightly increased as of end-October as the value of the central bank’s...

News

COVID-19 has had a significant impact on the mental health of Filipinos across different groups all over the archipelago. From frontline workers, parents balancing...

Disclaimer: Respect Investment.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Respect Investment. All Rights Reserved.