Peso strengthens as Gulf tensions ease

THE PESO strengthened against the dollar on Tuesday as global oil prices resumed their downtrend amid easing tensions in the Gulf region.

The currency climbed by 14.5 centavos to close at P61.545 versus the greenback from its P61.69 finish on Monday, based on Bankers Association of the Philippines data posted on its website.

The local unit opened Tuesday’s session slightly stronger at P61.65 per dollar. Its intraday high was at P61.53, while it dropped to a low of P61.70 against the greenback.

Dollars traded rose to $1.46 billion on Tuesday from $1.1 billion on Monday.

“The dollar-peso traded slightly lower on easing tensions in the Middle East amid news of halted strikes between Israel and Iran,” a trader said by phone.

Fresh signals from US President Donald J. Trump about progress on a ceasefire deal also supported the peso, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message, with easing Israel-Iran tensions resulting in lower oil prices and a weaker dollar.

For Wednesday, the trader said the peso could move between P61.35 and P61.75 as players await the release of US inflation data, while Mr. Ricafort sees it ranging from P61.54 to P61.75.

The US dollar edged lower on Tuesday, as investors weighed hopes for a deal to reopen the Strait of Hormuz against expectations of higher US interest rates following strong jobs data late last week, Reuters reported.

Iran and Israel said on Monday they had halted attacks on each other after an appeal from US President Donald J. Trump, though Tehran warned it would resume hostilities if Israel continued to hit Hezbollah in Lebanon.

The US dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was down 0.12% at 99.88 after reaching 199.21 on Monday, its highest since April 6. It hit 100.64 at the end of March, its highest level since May 2025.

Brent crude futures were down $1.33 or 1.4% at $92.92 a barrel at 0741 GMT, while US West Texas Intermediate declined $1.73 or 1.9% to $89.57 a barrel. — Aaron Michael C. Sy with Reuters