Peso climbs on expectations of lower oil prices

The PESO strengthened against the greenback on Friday amid expectations of lower fuel prices, with Iran likely to resume oil exports.

Local unit closed at P50.415 per dollar on Friday, appreciating 29 centavos from P50.71 on Thursday, based on data from the Philippine Bankers Association.

The peso opened Friday’s session stronger than its close the previous day at P50.63 against the dollar. Its weakest performance was at P50.67, while its best intraday was at P50.35 against the greenback.

The dollars traded reached $ 983.38 million on Friday, from $ 899.73 million on Thursday.

The peso appreciated amid expectations of a resumption in Iran’s oil exports as negotiations over the nuclear deal resume next month, the chief economist of Rizal Commercial Banking Corp. said. Michael L. Ricafort in a Viber message.

“Global oil prices were recently corrected to their lowest level a week before negotiations on the Iran nuclear deal resumed. “

Iran’s top negotiator has said nuclear talks with six world powers could be renewed by the end of November, Reuters reported. An agreement could lead to the lifting of sanctions on Iranian oil exports.

The peso also strengthened after the US dollar’s gauge against major global currencies fell to its one-month low amid a record high in US stock markets, which may suggest an improvement the risk appetite of the global market / a risk mode that tends to reduce demand for safe havens like the US dollar, ”Ricafort added.

At the same time, one trader said the peso appreciated as US economic growth for the third quarter of this year was weaker than market expectations.

US economic growth slowed to 2% from July to September, from 4.5% and 6.7% in the first two quarters of 2021. – JP Ibañez with Reuters

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Felix J. Dixon

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