THE PESO depreciated against the dollar on Monday amid escalating tensions in the Middle East.
The local unit closed at P57.59 per dollar on Monday, down by 7.9 centavos from its P57.511 finish on Friday, Bankers Association of the Philippines data showed.
The peso opened Monday’s session stronger at P57.45 against the dollar. Its intraday best was at P57.275, while its weakest showing was its closing level of P57.59 versus the greenback.
Dollars traded went down to $1.34 billion on Monday from $1.74 billion on Friday.
The peso declined against the dollar on Monday amid the conflict in the Middle East, a trader said by phone.
The local unit weakened due to the leak of Israel’s plans for attacks on Iran and after a drone exploded near Israeli Prime Minister Benjamin Netanyahu’s private residence, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort likewise said in a Viber message.
Iran has written to the United Nations nuclear watchdog to complain about Israel’s threats against its nuclear sites, foreign ministry spokesperson Esmaeil Baghaei said on Monday at a weekly news conference, Reuters reported.
Israel has vowed to attack Iran in retaliation for a volley of Iranian missiles launched on Oct. 1, leading to widespread speculation that Iran’s nuclear sites could be among Israel’s targets.
The peso was also dragged down by a generally stronger dollar on Monday as odds of Donald J. Trump winning the US presidential election increased, the trader added.
For Tuesday, the trader sees the peso moving between P57.30 and P57.60 per dollar, while Mr. Ricafort expects it to range from P57.45 to P57.65. — AMC Sy with Reuters
