Peso weakens back to 59 : $1 level

MANILA, Philippines, January 6 ------ The peso slid back to the 59-per-dollar level yesterday as investors turned cautious following fresh geopolitical tensions after the United States launched a military strike against Venezuela over the weekend.

Data from the Bankers Association of the Philippines showed that the local currency weakened by 28.9 centavos to settle at 59.13 against the greenback yesterday from its 58.841 finish on Friday. Yesterday’s close was still stronger than the peso’s record low of 59.22 on Dec. 9.

The local currency opened at 58.888 and briefly strengthened to 58.85 before sliding to its weakest level at 59.13. Trading volume rose by 32.9 percent to $929 million from $699 million in the previous session. RCBC chief economist Michael Ricafort said the peso’s weakness mirrored a slightly stronger dollar, which gained as investors sought safe-haven assets amid geopolitical risks. “There is a wait-and-see and somewhat defensive tone in global markets due to potential geopolitical implications,” Ricafort said, noting that the dollar was trading near one-month highs against major currencies.

He added that the peso was also weighed down by expectations of a wider trading range, with government economic managers projecting a dollar-peso rate of 58 to 60 from 2026 to 2028 and lowering the country’s 2026 gross domestic product growth forecasts. At the same time, gold prices climbed to near record highs as investors moved into traditional safe havens.

Source: philstar.com