The Philippine peso continued to weaken on Monday, June 16, after slipping back to the ₱56 level against the United States (US) dollar on Friday last week due to escalating conflict in the Middle East.
The local currency further depreciated at the start of the week, closing at ₱56.41, declining by 0.2 cents from its ₱56.21 finish last Friday.
According to the Bankers Association of the Philippines (BAP), the local currency reached an intraday low of ₱56.61 and a high of ₱56.25—its opening rate against the greenback.
Monday’s close was the lowest in one-and-a half months, last seen on April 28 at ₱56.42.
Total trading volume dropped to $1.3 billion from Friday’s $1.71 billion.
Michael Ricafort, chief economist at Rizal Commercial Banking Corp. (RCBC), said the peso’s movement is still influenced by ongoing geopolitical tensions in the Middle East, particularly the intensified conflict between Israel and Iran since June 13.
Meanwhile, Ricafort said that the US dollar saw corrections against major currencies, nearing three-year highs.
But Dutch financial giant ING said the rebound of the “safe haven” US dollar amid tensions between Israel and Iran has been “lackluster” so far.
