Peso may trade sideways as mart awaits Iran deal
THE PESO may stay rangebound against the dollar this week as players await clearer guidance on the ceasefire deal between the United States and Iran.
On Friday, the local unit edged up by half a centavo to close at P61.59 against the greenback from ending at P61.595 on Thursday.
Week on week, the peso gained 10 centavos from its P61.69-a-dollar finish on May 22.
The peso opened Friday’s session stronger at P61.42 against the dollar. It reached an intraday best of P61.39 and a low of P61.645 versus the greenback.
“The dollar-peso closed a tad lower but initially fell to P61.645 on dollar-positive news on the extension of the ceasefire between the US and Iran and lifting of the blockade in the strait of Hormuz,” a trader said in a phone interview.
“However, it was met with fresh buyer demand as they are skeptical given Trump has not yet approved the deal and Treasury Secretary Scott Bessent reiterated they still need to talk about the enriched uranium in order for the deal to push through.”
Lower global crude oil prices following positive ceasefire deal developments also supported the peso on Friday, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
For this week, the trader said the peso will likely continue to move sideways as players await developments in the US-Iran peace negotiations.
The trader sees the peso moving between P61.25 and P61.75 per dollar this week, while Mr. Ricafort expects it to range from P61.30 to P61.75. — Aaron Michael C. Sy
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