Peso stays at record low as war keeps market guarded

THE PESO closed flat at its all-time low against the dollar on Tuesday as uncertainty over the Middle East war kept the market cautious.

The currency ended at its record low of P61.75, unchanged from Monday’s finish, according to Bankers Association of the Philippines data posted on its website.

The local unit opened Tuesday’s session stronger at P61.60 per dollar. Its intraday best was at P61.55 against the greenback, while its low was its closing value of P61.75.

Dollars traded rose to $1.21 billion from $1.001 billion in the previous session.

The peso was steady as it was supported by possible intervention from the Bangko Sentral ng Pilipinas (BSP), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP has said that it intervenes in the foreign exchange market to prevent sharp swings but does not have a target level for the currency.

“The peso closed unchanged amid lingering uncertainty over a potential US-Iran deal,” a trader said in a Viber message.

For Wednesday, the trader said the peso could recover against the greenback on potential profit taking.

The trader sees the local unit moving between 61.50 and 61.75 per dollar on Wednesday, while Mr. Ricafort expects it to range from P61.60 to P61.80. — A.M.C. Sy