The Philippine peso fell to a near two-week low on Tuesday, closing at P61.48 against the US dollar as investors moved toward the dollar amid higher global oil prices, uncertainty over US-Iran talks, and caution ahead of US inflation data.
Bankers Association of the Philippines data showed the peso weakened by 33 centavos from its previous close of P61.15. It opened at P61.25, reached an intraday low of P61.495, and recovered slightly before the end of trading.
The close marked the peso’s weakest finish since April 30, when it ended at P61.485.
Oil prices climbed by about 2% as markets reacted to the lack of progress in US-Iran negotiations, raising concerns over possible disruptions in global energy supply. The dollar also strengthened as investors sought safer assets while waiting for the US Consumer Price Index report.
Stronger-than-expected US inflation could further boost the dollar and add pressure on emerging market currencies, including the peso. The peso could test its previous record low of P61.75, with resistance levels seen at P61.80 and P62.
Dollar turnover rose slightly to $1.513 billion from $1.511 billion in the previous session.
