Peso rises further as markets monitor Iran-Israel rift

THE PESO rose further against the dollar on Tuesday amid easing tensions in the Middle East.

The local unit closed at P57.51 per dollar on Tuesday, strengthening by three centavos from its P57.54 finish on Monday, Bankers Association of the Philippines data showed.

The peso opened Tuesday’s session stronger at P57.50 against the dollar. Its intraday best was at P57.39, while its weakest showing was its close of P57.51 versus the greenback.

Dollars exchanged went up to $1.18 billion on Tuesday from $1.16 billion on Monday.

“The peso gained amid continued easing of market concerns on the conflict between Israel and Iran,” a trader said in an e-mail.

Easing tensions in the Middle East also resulted in lower crude prices on Tuesday, which could help reduce inflationary pressures, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

Oil prices recovered some of the sharp losses overnight as investors continued to assess the situation in Middle East, Reuters reported. Brent futures rose 0.4% to $87.34 a barrel, while US crude gained 0.4% to $82.25 a barrel.

Nuclear weapons have no place in Iran’s nuclear doctrine, the country’s foreign ministry said on Monday, days after a Revolutionary Guards commander warned that Tehran might change its nuclear policy if pressured by Israeli threats.

“Iran has repeatedly said its nuclear program only serves peaceful purposes. Nuclear weapons have no place in our nuclear doctrine,” ministry spokesperson Nasser Kanaani said during a press conference in Tehran.

Following a spike in tensions with Israel, the Guards commander in charge of nuclear security Ahmad Haghtalab said last week that Israeli threats could push Tehran to “review its nuclear doctrine and deviate from its previous considerations.”

Iran’s Supreme Leader, Ayatollah Ali Khamenei, who has the last say on Tehran’s nuclear program, banned the development of nuclear weapons in a fatwa, or religious decree, in the early 2000s.

For Wednesday, the trader said the peso could depreciate anew ahead of a likely robust US durable goods order report.

The trader sees the peso moving between P57.35 and 57.60 on Wednesday, while Mr. Ricafort expects it to range from P57.40 to P57.60 per dollar. —