The Philippine peso weakened and local stocks fell on Monday as investors reacted to surging oil prices after US President Donald Trump rejected a Middle East peace proposal, sending Brent crude toward $107 a barrel.
The peso closed at P58.96 against the US dollar, down from P58.65 at Friday's close, according to Bankers Association of the Philippines data. The local currency opened at P58.85, touched an intraday low of P59.02, and traded within a P58.85 to P59.02 range on volume of $1.54 billion, up from $1.37 billion on Friday. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso's drop tracked the broad strength of the US dollar against most currencies overnight, adding that markets stayed cautious ahead of upcoming Philippine inflation data and the US jobs report.
Philippine stocks also retreated. The benchmark Philippine Stock Exchange index fell 0.62 percent, or 38.59 points, to close at 6,190.47, while the broader All Shares index slipped 0.3 percent to 3,719.85. Analysts said investors turned risk-averse as oil prices surged.
The selloff followed Trump's rejection of a proposed Gaza ceasefire plan, which reignited fears of a wider regional conflict. Brent crude climbed toward $107 a barrel, reviving concerns about a possible disruption of shipping through the Strait of Hormuz, the chokepoint through which roughly a fifth of the world's oil flows.
Higher oil prices are a particular worry for the Philippines, a net oil importer, because they push up transport and power costs and can feed into consumer inflation. Ricafort noted that elevated global crude prices could weigh on the peso further if the conflict premium in oil persists.
The episode shows how quickly geopolitical headlines can transmit into emerging-market assets. With US payroll data and local inflation figures due later this week, traders expect the peso and the PSEi to remain sensitive to both oil moves and the dollar's direction.
Sources:
- GMA News Online: https://www.gmanetwork.com/news/mon...ump-rejects-middle-east-peace-deal/story/?amp
- Reuters energy markets reporting: https://www.reuters.com/business/energy/ (oil price context referenced)
The peso closed at P58.96 against the US dollar, down from P58.65 at Friday's close, according to Bankers Association of the Philippines data. The local currency opened at P58.85, touched an intraday low of P59.02, and traded within a P58.85 to P59.02 range on volume of $1.54 billion, up from $1.37 billion on Friday. Rizal Commercial Banking Corp. chief economist Michael Ricafort said the peso's drop tracked the broad strength of the US dollar against most currencies overnight, adding that markets stayed cautious ahead of upcoming Philippine inflation data and the US jobs report.
Philippine stocks also retreated. The benchmark Philippine Stock Exchange index fell 0.62 percent, or 38.59 points, to close at 6,190.47, while the broader All Shares index slipped 0.3 percent to 3,719.85. Analysts said investors turned risk-averse as oil prices surged.
The selloff followed Trump's rejection of a proposed Gaza ceasefire plan, which reignited fears of a wider regional conflict. Brent crude climbed toward $107 a barrel, reviving concerns about a possible disruption of shipping through the Strait of Hormuz, the chokepoint through which roughly a fifth of the world's oil flows.
Higher oil prices are a particular worry for the Philippines, a net oil importer, because they push up transport and power costs and can feed into consumer inflation. Ricafort noted that elevated global crude prices could weigh on the peso further if the conflict premium in oil persists.
The episode shows how quickly geopolitical headlines can transmit into emerging-market assets. With US payroll data and local inflation figures due later this week, traders expect the peso and the PSEi to remain sensitive to both oil moves and the dollar's direction.
Sources:
- GMA News Online: https://www.gmanetwork.com/news/mon...ump-rejects-middle-east-peace-deal/story/?amp
- Reuters energy markets reporting: https://www.reuters.com/business/energy/ (oil price context referenced)
