Peso Stabilizes at P61 Level Amid Global Oil Price Uncertainty

The Philippine peso is likely to continue its sideways movement against the US dollar this week, potentially holding at the P61 range. The currency surged by 32 centavos on Friday to close at P61.24 from P61.56 on Thursday, marking its best finish in over a month.

According to traders, the peso's performance is influenced by global oil prices and upcoming key economic data releases. The sharp drop in the Japanese yen also contributed to the greenback's decline following intervention from the Bank of Japan and the US Treasury.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort noted that uncertainties over the implementation of the P85 wage hike in the National Capital Region (NCR) supported the peso. Labor Secretary Francis N. Tolentino plans to seek legal remedies to overturn a court-ordered temporary freeze on the minimum wage hike, which could impact the peso's movement.

For this week, traders expect the peso to move between P61 and P61.50 against the dollar as they monitor developments in the Middle East and await Philippine economic data releases.