Peso rebounds vs dollar on oil price correction, gov’t offer of euro bonds

THE PESO rebounded versus the greenback on Thursday as oil prices corrected and after the government raised €2.1 billion from its offer of euro-denominated bonds.

The local unit closed at P48.41 per dollar on Thursday, appreciating by four centavos from its P48.45 finish on Wednesday, based on data published on the Bankers Association of the Philippines’ website.

The peso opened the session at P48.43 per dollar, which was also its weakest showing for the day. Meanwhile, its intraday best was at P48.38 against the greenback.

Dollars traded dropped to $595.5 million on Thursday from $797.4 million on Wednesday.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort attributed the peso’s appreciation to the downward correction in oil prices.

Reuters reported that oil prices declined on Wednesday amid cautious sentiment as COVID-19 cases went up in many countries, particularly India. The price of US crude dropped 2.11% to $61.35 per barrel, while Brent was down 1.86% to $65.33.

Mr. Ricafort said sentiment was also supported by the euro-denominated bond sale of the Bureau of the Treasury.

The government raised €2.1 billion (P122.4 billion) through its offer of eurodenominated bonds in tenors of four years, 12 years, and 20 years.

Meanwhile, a trader said the peso appreciated versus the dollar on expectations of lower weekly initial US jobless claims. The data was set to be released later in the day.

For Friday, Mr. Ricafort gave a forecast range of P48.35 to P48.45 per dollar, while the trader expects the local unit to move within P48.30 to P48.50 —